Comprehension

The Supreme Court of India has held that it is a cardinal principle of the law of contract that the offer and acceptance of an offer must be absolute. It can give no room for doubt. The offer and acceptance must be based or founded on three components, that is, certainty, commitment and communication. However, when the acceptor puts in a new condition while accepting the contract 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, [AIR 1972 SC 1242]. 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

Based on the given excerpt, which of the following judgments is related to acceptance of a conditional offer?

Updated On: Jul 11, 2024
  • State of Punjab v. Davinder Singh, (2020) 8 SCC 1
  • Padia Timber Co. Pvt. Ltd. v. Board of Trustees of Visakhapatnam Port Trust, (2021) 3 SCC 24.
  • Sonu v. Sonu Yadav, 2021 SCC OnLine SC 286
  • Akshay Kumar Singh v. State (NCT of Delhi), (2020) 3 SCC 431.
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The Correct Option is B

Solution and Explanation

The correct option is (B) : Padia Timber Co. Pvt. Ltd. v. Board of Trustees of Visakhapatnam Port Trust, (2021) 3 SCC 24.
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Question: 2

‘The acceptance must match with the terms of offer’. The given statement is known as

Updated On: Aug 22, 2024
  • Doctrine of Promissory Estoppel
  • Doctrine of Privity of Contract
  • Mirror Rule
  • Postal Rule
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The Correct Option is C

Solution and Explanation

The correct option is (C) : Mirror Rule
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Question: 3

Which of the following judgments relates to postal rule in a contract?

Updated On: Jul 11, 2024
  • Central Inland Water Transport Corpn v. Brojo Nath Ganguly, AIR 1986 SC 1571.
  • Kanchan Udyog Ltd. v. United Spirits Ltd., (2017) 8 SCC 237.
  • Energy Watchdog v. Central Electricity Regulatory Commission, (2017) 14 SCC 80
  • Bhagwandas Goverdhandas Kedia v. M/s. Girdharilal Parshottamdas, AIR 1966 SC 543.
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The Correct Option is D

Solution and Explanation

The correct option is (D) : Bhagwandas Goverdhandas Kedia v. M/s. Girdharilal Parshottamdas, AIR 1966 SC 543.
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Question: 4

Based on the given excerpt, which of the following is correct?

Updated On: Jul 11, 2024
  • If the acceptance is conditional, offer can be withdrawn at any moment until absolute acceptance has taken place.
  • If the acceptance is conditional or is not final, then there is a concluded contract.
  • If there is no concluded contract, still the liability to pay damages may arise
  • If the acceptance is conditional, offer cannot be withdrawn at any moment until absolute acceptance has taken place.
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The Correct Option is A

Solution and Explanation

The correct option is (A) : If the acceptance is conditional, offer can be withdrawn at any moment until absolute acceptance has taken place.
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Question: 5

The University sent a letter regarding the offer of appointment to Mr. X at his postal address on June 10, 2021. However, Mr. X received a lead about the dispatch of offer of appointment from his friend, Mr. Y, who is an employee of the University. Upon knowing about the offer, Mr. X sent his acceptance through e-mail at the official e-mail id of the University. Later, due to restrictions guidelines issued by the appropriate authority during the COVID-19 pandemic, Mr. X failed to receive the letter sent by the University whereas, it was specifically mentioned that the communication for acceptance was to be sent in writing through postal service at the official address of the University and no other mode of communication would be accepted.
Based on the given facts, which of the following is correct?

Updated On: Jul 11, 2024
  • Acceptance before completion of delivery of offer is valid
  • Acceptance before completion of delivery of offer is not valid.
  • A contract is always valid irrespective of completion of offer.
  • Acceptance by Mr. X results in a valid contract.
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The Correct Option is B

Solution and Explanation

The correct option is (B) : Acceptance before completion of delivery of offer is not valid.
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Question: 6

Which of the following is correct about acceptance of offer in a contract?

Updated On: Jul 11, 2024
  • The intention of the offeree to accept may or may not be expressed with such certainty.
  • An absolute and unqualified acceptance can never be inferred from the conduct of the offeree
  • When there is a variation between the offer and acceptance even in respect of any material term, acceptance can be said to be absolute and it results in the formation of a legal contract
  • An absolute and unqualified acceptance may be inferred from the conduct of the offeree
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The Correct Option is D

Solution and Explanation

The correct option is (D) : An absolute and unqualified acceptance may be inferred from the conduct of the offeree
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