Can a dealer refuse to honour a price agreed on Day 1 of an exhibition when you return on Day 2?
It depends entirely on whether a contract was formed on Day 1. If you only received a price quotation — no payment, no clear acceptance from the dealer — the quotation is an offer that may lapse over time under the Indian Contract Act. An exhibition price quote typically lapses at the end of the event day, if not sooner. If the dealer gave you a price and you said 'I'll think about it' and left, no contract was formed — the dealer is free to change the price on Day 2. But if the dealer said 'it's yours' and you confirmed purchase (even verbally), a contract exists and the price cannot be unilaterally changed.
The offer lapse principle — ICA §6
Section 6 of the Indian Contract Act provides that a proposal lapses when the time prescribed for its acceptance has elapsed, or when a reasonable time has elapsed if no time is prescribed. At an exhibition, a dealer quotes a price for a note. The buyer says 'I'll come back tomorrow' and leaves. The dealer's price quotation was an offer. The reasonable time for its acceptance in a two-day exhibition context is typically the duration of that day's session — prices may change between sessions as the dealer reviews their inventory, receives new offers, or reconsiders valuation.
A Day 1 price that was not accepted on Day 1 is an offer that has likely lapsed by Day 2. The dealer who offers a different price on Day 2 is making a new offer — not violating any existing contract. The buyer who walks away on Day 1 takes the risk that the price changes. This is the fundamental nature of an offer without a fixed acceptance deadline.
When Day 1 IS a contract — the acceptance requirement
If on Day 1 the buyer said 'I want this note at ₹5,000' and the dealer replied 'yes, it's yours, come back tomorrow to collect and pay' — this is acceptance. A contract was formed. The dealer committed to deliver the note at ₹5,000 and the buyer committed to pay. The dealer cannot increase the price on Day 2 without the buyer's agreement. Doing so is a breach of the contract formed on Day 1.
The evidence challenge: this Day 1 conversation was oral. If no documentation was created — no receipt, no WhatsApp confirmation, no partial payment — proving the contract requires the same approach as any oral contract dispute. Immediate WhatsApp confirmation on Day 1, before leaving the stall, converts an uncertain oral contract into a documented one.
The 'hold' arrangement — a formal commitment
A more structured approach: if a buyer wants to secure an item for collection the next day, they should offer a deposit and get a receipt. The deposit creates a documented contract — the dealer accepted part-performance of the buyer's payment obligation and confirmed the note would be held. The deposit receipt with the note description, total price, deposit amount, and 'to be collected Day 2' instruction is an unambiguous contract.
Laws & authorities referenced in this chapter
Indian Contract Act 1872 — §6 (offer lapses after reasonable time; exhibition day is the reasonable time for exhibition prices)
Indian Contract Act 1872 — §2(b) (acceptance required for contract; 'I'll come back tomorrow' is not acceptance)
Sale of Goods Act 1930 — part-payment as consideration creating binding contract
Day 1 price quotation only (no acceptance): likely lapses by Day 2 — dealer can change price (ICA §6 offer lapse). Day 1 clear acceptance ('it's yours, collect tomorrow'): binding contract — dealer cannot increase price. Evidence: immediate WhatsApp confirmation on Day 1 is the fix. Formal protection: deposit + receipt = documented contract. Without documentation: proving a Day 1 acceptance is the same challenge as proving any oral contract. Act at the stall, not the next morning.
This is educational content, not legal advice. For a specific situation, please consult a qualified legal professional. Excerpted from Currency, Coins & The Law by Mayank Agarwal, Part 19: Exhibitions, Private Meetings & Advanced Transaction Law — Organiser Liability, Offer Lapse, Sleight-of-Hand Fraud & Auction Rings.