Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Intention to purchase

(Querist) 08 April 2013 This query is : Resolved 
Dear Experts,

Please let me know: if mere intention to purchase,raise of invoice and creation of purchase order creates a valid binding contract to purchase.

And if a proposed buyer can be forced to make payment without receiving the product he had intended to purchase.
ajay sethi (Expert) 08 April 2013
academic query . state facts of your case
Guest (Expert) 08 April 2013
Your query is incomplete without stating whether the purchase order has been communicated or not physically or through electronic media. Purchase order if not communicated effectively, does not make any sense for the purpose of a contract. Raising of an invoice is a secondary thing and has nothing to do with the intention to purchase.
Adv k . mahesh (Expert) 08 April 2013
complete details to answer the correct answer and making of invoice and cancelling is permitted and buyer cannot be forced to make the payment even he can cancel in last minute
prabhakar singh (Expert) 08 April 2013
It is offer by one and the acceptance by the other that creates an agreement enforceable at law as a contract.

A seller filling his own order book(unsigned by the purchaser) and raising an invoice to corroborate can not establish a contract of buy enforceable at court of law unless he can prove order as offer to purchase by the buyer by some other mean such as telephonic,sms or email communication as order,in pursuance of which delivery would also be required to be proved to fasten with liability to pay.

No buyer can be asked to pay for undelivered good unless it was pre agreed.
Devajyoti Barman (Expert) 08 April 2013
please refer to ' offer and acceptance' chapter of Indian Contract Act.
You have given no facts for your query.
Raj Kumar Makkad (Expert) 19 April 2013
No more to add in the given replies.
R.V.RAO (Expert) 03 February 2014
if it is only a mere intention to purchase, and mere intention to raise invoice and only an intention to creation of purchase order, all these are intentions. there is no real action .
So there is neither offer nor acceptance and hence no contract made.
SO NOTHING IS BINDING ON THE PART OF EITHER PARTY.

The proposed buyer can not be forced to make payment without receiving the product if it is stated in Purchase order terms/ expressly agreed between parties, that payment will be made after delivery.
instead, if it is cash and carry, you need to pay first and then take delivery.
silence is not a mode of communication. Mere intentions and emotions have no place in commercial world,unlike in the world of entertainment .


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :