Question:

Principle: Acceptance should be made while the offer is still subsisting. The offeror may withdraw his offer at any time before acceptance. If no time limit is specified, acceptance must be made within a reasonable time. Facts: 'X' offers to 'Y' to sell his equipment for Rs. 1,000. No time limit is specified for acceptance. 'Y' sends his acceptance two years later.

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An offer lapses if not accepted within the stipulated or reasonable time frame.
Updated On: Aug 11, 2025
  • There arises a contract between 'X' and 'Y' to sell/buy the equipment in question for Rs. 1,000
  • There does not arise any contract between 'X' and 'Y' to sell/buy the equipment in question for Rs. 1,000
  • 'X' is bound by his offer, and hence, cannot reject the acceptance made by 'Y'
  • There arises a promise by 'Y' to buy the equipment
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The Correct Option is B

Solution and Explanation

Acceptance must occur within the time prescribed or, if not specified, within a “reasonable” time. A delay of two years is far beyond reasonable, causing the offer to lapse. Therefore, no contract arises.
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