Comprehension

It is a cardinal principle of the law of contract that acceptance of an offer must be absolute and it can give no room for doubt. The offer and acceptance must be founded on three components, viz., ‘certainty’, ‘commitment’ and ‘communication’. However, when the acceptor puts any new condition while accepting the proposal already signed by the proposer, the contract is not complete until the proposer accepts that condition, as held by the Court in Haridwar Singh v. Bagun Sumbrui,[(1973) 3 SCC 889]. An acceptance with a variation is no acceptance. It is, in effect and substance, simply a counter-proposal which must be accepted fully by the original proposer, before a contract is made.

Question: 1

In case a contract is entered into through instantaneous modes of communication, which of the following is correct?

Updated On: Jul 11, 2024
  • Section 4 of the Indian Contract Act, 1872 is not applicable stricto sensu.
  • Section 4 of the Indian Contract Act, 1872 is applicable to acceptance communicated by instantaneous modes of communication.
  • Information Technology Act, 2000 provides rules regarding the time when offer and acceptance are complete
  • Information Technology Act, 2000 expressly provides for instantaneous mode of communication for contract.
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The Correct Option is A

Solution and Explanation

The correct option is (A) : Section 4 of the Indian Contract Act, 1872 is not applicable stricto sensu.
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Question: 2

Goods displayed in a shopping mall with price mentioned against each of them is an example of ______.

Updated On: Jul 19, 2024
  • An offer.
  • Counter offer.
  • Invitation to offer.
  • Acceptance in advance.
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The Correct Option is C

Solution and Explanation

The correct option is (C) : Invitation to offer.
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Question: 3

Which of the following statements regarding Section 2(j) of the Indian Contract Act, 1872 is not true?

Updated On: Jul 19, 2024
  • It deals with the void contract due to ceasing of enforceability by law.
  • It deals with the contract which is not void from its inception but later it becomes void.
  • It deals with the agreement which is void from its inception
  • It deals with the contract which becomes void from the time of its ceasing of enforceability by law.
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The Correct Option is C

Solution and Explanation

The correct option is (C) : It deals with the agreement which is void from its inception
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Question: 4

What is the effect of counter offer?

Updated On: Jul 11, 2024
  • Counter offer leads to rejection of the original offer.
  • Counter offer creates a binding contract on the basis of the terms specified in the counter offer.
  • Counter offer creates a legal binding obligation on the basis of the terms of original offer.
  • Counter offer shall be binding on original proposer in the same way as it is made by him only.
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The Correct Option is A

Solution and Explanation

The correct option is (A) : Counter offer leads to rejection of the original offer.
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Question: 5

In order to constitute a valid acceptance of an offer, it must be

Updated On: Jul 11, 2024
  • Unqualified
  • Conditional
  • Absolute
  • Both (A) and (C).
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The Correct Option is D

Solution and Explanation

The correct option is (D) : Both (A) and (C).
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Question: 6

To be a legally valid contract, there must be

Updated On: Jul 11, 2024
  • Offer and acceptance, lawful consideration, intention to create legal relations, competent parties.
  • Offer and acceptance, competent parties, lawful consideration, free consent, intention to create legal relations.
  • Offer and acceptance, lawful object, lawful consideration; free consent.
  • Offer and acceptance, lawful consideration, lawful object, free consent, competent parties, intention to create legal relations.
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The Correct Option is D

Solution and Explanation

The correct option is (D) : Offer and acceptance, lawful consideration, lawful object, free consent, competent parties, intention to create legal relations.
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