Question
Gandalf is a tenant at a council house let out by the Middle-Earth City Council (MECC). He has been living at the house for 15
Gandalf is a tenant at a council house let out by the Middle-Earth City Council (MECC). He has been living at the house for 15 years and has been responsible for rent and its upkeep under an agreement with MECC.
On May 30, 2020, MECC disseminated a flier stating that tenants who have been living on their premises for more than 12 years can apply to buy council houses at a discounted rate. MECC's flier included an application form that tenants could fill out. The application form also expected prospective buyers to make a deposit of Rs 10 lakhs towards payment of advance to MECC's bank account. Additionally, tenant-buyers were expected to show the availability of required funds by submitting their recent bank statements. The flier included the following clause-
"***Please note that submitting a duly filled out application form and payment of the deposit does immediately entitle you to make the purchase."
On May 31, 2020, Gandalf saw the flier, filled out the application form fully and submitted it to the MECC. Gandalf's house was estimated at Rs 2.5 Crores according to the details in the flier. Gandalf proceeded to print out his bank statement and attach it with the application form as proof that he has sufficient funds to make the purchase.Additionally, he also deposited Rs 10 lakh in lieu of advance to the bank account. Gandalf's application and deposit reached MECC on May 31, 2020. The clerk at the office processed the application and informed Gandalf that MECC representatives would get in touch with him over the next week.
MECC was due to sell some of its properties to recover some previous losses in June 2020. The house at which Gandalf lived was valued at Rs 3.5 Cr on the market. Come June 2, 2020, Frodo Baggins made an offer to MECC to buy Gandalf's house for Rs 4 Crores.On June 3rd, 2020 an MECC representative informed Gandalf in person that he was not entitled to make the purchase and that there was a print error in the clause stated above. The clause ought to have read "does not entitle".
Gandalf brought an action against MECC.
Question:
Is Gandalf likely to succeed?
Select one:
a.Gandalf is unlikely to succeed because -
1. The flier was not an offer, but an advertisement.
2. Gandalf ought to have known there was a mistake in the clause printed.
3. Gandalf was informed of the mistake.
b.Gandalf is likely to succeed because-
1. MECC made an offer;
2. Gandalf accepted the offer.
c.Gandalf is unlikely to succeed here because there is no contract between the two parties.
d.
Gandalf is likely to succeed because -
1. A promise was made by MECC;
2. Gandalf relied on the promise; and
3. Gandalf made the application and deposited money.
4. The printing mistake is irrelevant because Gandalf relied on a statement made by the MECC and had no way of knowing this was a print error.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started