The famous case of Lalman Shukla vs. Gauri Datt is

Solution

In this case it was held that for the purpose of entering into a contract two things are essential: (1) To have complete knowledge of the facts of the offer or proposal; and (2) Acceptance of the offer. To convert a proposal into an agreement both knowledge and assent to it must be present. However, in the given case, both were missing.  As the plaintiff had no knowledge and hadn’t given his approval or accepted the proposal so there did not exist a valid contract between the two. In the case it was held that for creating or entering into a valid contract there has to be knowledge and assent to the offeree made by the proposer.