Issue 3

Whether there was a binding contract between the parties and compensation should be provided
to the plaintiff or not?

It is humbly submitted that there was unilateral contract between the parties, if there is an offer to
the world at large then the performance of the specified condition in the offer will constitute
acceptance of the offer and consideration for the promise.

When deciding the maintainability of the lawsuit filed by my client against the manufacturing
company, section 11 of The Consumer Protection Act says that the District Forum shall have
jurisdiction to entertain complaints where the value of the goods or services and the
compensation is involved, so as per this section of the consumer protection act it is contended
that the suit filed by my client is maintainable and falls within the jurisdiction of this court.
Hence it is triable.

Similar was held in the Food Corporation of India v. District Consumer Forum, a complaint was
filed against the Food Corporation of India before the District Consumer Forum, which was
allowed. No objection regarding jurisdiction was taken before the District Forum. In the appeal
against the order of the District Forum as well, such an objection was not taken.

A unilateral offer can occur where one party, the offeror, promise to pay for the performance of
another, that is, a conditional promise. Promises in unilateral offer can be performed in many
ways. The acceptance of the unilateral offer takes place when the offeree performs the act in
specific way.in the case of carlill case they have advertised that they would pay 100 dollar to any
person who will get influenza after using the smoke ball specified period.as in crab apple
advertisement, they would give the apple pip for the first five customers to 50 dollar, both these
cases are equal as a unilateral offer made to the entire world. If the respondent have made an
advertisement and put it on the newspaper then it would constitute a unilateral offer and not an
invitation to treat.

In the advertisement the reward of rs. 50,000 was mentioned to any person who contracts with
the increasing fatigue, weakness or any disease caused by taking multivitamins therefor the
company is under obligation and bound to fulfill, because it was published so it would be read
and acted upon as it was not an empty boast so, my client who suffered from lot of bodily
changes/side effects because of this capsule should be compensate.

In a unilateral contract there is still a meeting of minds as the acceptor only accepts the offer
when he does not object to the terms and conditions laid down by the offeror and there is no
compulsion that the acceptor goes into a contract with the offeror if he does not agree with the
terms and conditions, hence even when there is no bargain there could still be meeting of minds
to form a contract which is legally enforceable. The use of multivitamins are genaralised and
magazine or television advertisements for vitamins appear to promise that these supplements
improve your health and wellbeing, prevent illness or increase your life span. False advertisement
or using reward as an instrument is very prevelant in advertising societies.it is used as a method
to increase sales and earn profits but it could lead to more chronic/grave issues to general public
who believes it to be true.

It is contented that where the offeree has shown his intention to accept the offer and has
performed the specified conditions, then it would constitute a valid contract.my client accepted
the unilateral offer made by active pvt. Ltd. by purchasing the tablets and consuming it as per the
instructions i.e, one tablet per day thus, it formed the ground for a valid contract.

In the case of Errington vs Errington and wood lord denning has stated that “the father promise
was a unilateral contract-a promise of a house in return for their act of paying the installments.it
could not be evoked by him once the couple entered the performance of the act, but it would
cease to bind him if they left it incomplete and unperformed, which they have not done.in crab
apple case the appellant had an intention of accepting the offer by queuing up to be the one of the
first five customers to buy apple-pip and defendant cannot revoke the offer because appellant was
performing on respondent promise by queuing up.

In brodgen vs metropolitan railway it was described that acting according to the agreement’s
terms would make the unilateral contract binding. In unilateral contract, only one of the parties is
under a legal obligation.

There are two basic principles for those entering contracts. They have to have mental capacity
and maturity. Mental capacity is the level of ability to fully understand the meaning and effects of
a contract. If a person is not able to fully understand and comprehend his/her legal rights and
responsibility in a contract, he or she is not legally capable of entering into a contract but in some
cases the mental capacity can be measured using the person’s ability to judge if they should or
should not enter in the contract

My client although being minor had sufficient mental capacity and maturity to enter into the
contract and the consideration in this was the money which he subsequently paid to but Acta-G
capsules. Hence this contract should be considered as a valid contract.

H.G Wells once famously said that advertising was legalized lying. This reflects the dilemma on
advertising and its effect on consumers. In an environment of zealous competition in the
foreground of the company, advertisement often tend to exaggerate and misrepresent facts which
ultimately affect impressionable minds.

One of the most recent case of false claim by nutraceutical company is of amway, amway has
been making false and misleading health claims for its vitamin supplement Nutrilite daily an
violating India’s food law. After hearing the complaint filed by the food regulator, FSSAI, the
court slabbed a penalty of rs.10 lakh on the company Act-G capsules making my clients body
entirely dependent on the consumption of these capsuled should be held liable to pay
compensation to my client as it caused severe health issue to my client. The company cannot
waive off its liability by simply ignoring the appeal made by my client.