Offer And Acceptance

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  • 1/67 Questions

    On the acceptance of an offer by the offeree, which of the following persons becomes legally bound by the contract?

    • Only the acceptor, as he has accepted the offer
    • Only the offeror, as his terms are accepted
    • Both the acceptor and the offeror
    • None of these
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  • 2. 

    Where no time is fixed for the acceptance of the offer, then the offer can be accepted

    • At any time upto one year.

    • At any time upto three years.

    • Within reasonable time which depends upon the facts and circumstances of the case.

    • After seeking due permission form the court irrespective of time limit.

    Correct Answer
    A. Within reasonable time which depends upon the facts and circumstances of the case.
    Explanation
    The correct answer is "Within reasonable time which depends upon the facts and circumstances of the case." In cases where no time is specified for the acceptance of an offer, the offer can be accepted within a reasonable time. The determination of what constitutes a reasonable time will depend on the specific facts and circumstances of each case. There is no fixed time limit, such as one or three years, and seeking permission from the court is not necessary unless specified by law or agreement.

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  • 3. 

    Under the English Law, both the offeror and the acceptor become bound by the contract when the letter of acceptance is posted.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Under the English Law, the concept of "postal rule" states that when a letter of acceptance is posted, it is considered as a valid acceptance and both the offeror and the acceptor become bound by the contract. This means that even if the letter of acceptance is lost or delayed in the mail, the contract is still considered to be formed at the moment the letter was posted. Therefore, the statement "Under the English Law, both the offeror and the acceptor become bound by the contract when the letter of acceptance is posted" is true.

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  • 4. 

    Where the time is fixed for acceptance of the offer and it is not accepted with the fixed time, then the

    • Offer automatically lapses on the expiry of fixed time.

    • Offer can be accepted by paying penalty.

    • Offeree loses his r>ght to become a party to any contract in future.

    • Offer lapses but only with the permission of the court.

    Correct Answer
    A. Offer automatically lapses on the expiry of fixed time.
    Explanation
    When the time is fixed for acceptance of an offer and it is not accepted within the specified time, the offer automatically becomes invalid and no longer available for acceptance. There is no need for any further action or penalty to be paid. The offeree does not lose their right to enter into future contracts, and there is no requirement for court permission for the offer to lapse.

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  • 5. 

    A specific offer is one which is made to

    • Ascertained person.

    • Public at large

    • Relatives only

    • Males only.

    Correct Answer
    A. Ascertained person.
    Explanation
    The correct answer is "Ascertained person." This means that the specific offer is made to a particular individual or group of individuals who are identified or specified. It is not made to the public at large, relatives only, or males only.

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  • 6. 

    On the death of an offeree before he accepts  the offer, the offer comes to an end

    • True, as the offer lapses by- operation of law.

    • False, as there is no provision to that effect in section 6 of the Act.

    Correct Answer
    A. True, as the offer lapses by- operation of law.
    Explanation
    When an offeree dies before accepting an offer, the offer automatically comes to an end. This is because the death of the offeree terminates their ability to accept or reject the offer. This principle is known as the lapse of offer by operation of law.

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  • 7. 

    A, by a letter, offered to sell his Maruti car to B for Rs.70,000. B wrote a letter stating that he was prepared to buy it for Rs.60,000. In this case,

    • A valid contract is concluded between A and B as there is proper communication of acceptance

    • There is communication of acceptance to the offeror (A) himself, and thus he is bound by the contract.

    • No valid contract is concluded as B's letter is only a counter offer and not acceptance.

    • If B wants to buy the car, he should accept the original offer of Rs.70,000.

    Correct Answer
    A. No valid contract is concluded as B's letter is only a counter offer and not acceptance.
    Explanation
    In this scenario, B's letter stating that he is prepared to buy the car for Rs.60,000 is considered a counter offer, not an acceptance. A counter offer is a rejection of the original offer and creates a new offer. Therefore, there is no valid contract concluded between A and B as B's letter does not constitute acceptance of A's offer. If B wants to buy the car, he should accept the original offer of Rs.70,000.

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  • 8. 

    "When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise'.

    • True, as it is the legal definition of acceptance give in Section 2(b)

    • False, as on acceptance the proposal does not become promise.

    Correct Answer
    A. True, as it is the legal definition of acceptance give in Section 2(b)
    Explanation
    The given answer is true because it accurately states that when a person accepts a proposal, it becomes a promise. This is in accordance with the legal definition of acceptance given in Section 2(b).

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  • 9. 

    Which of the following is the legal requirement of a valid offer?

    • It must have its terms definite and clear.

    • It must be capable of creating legal relation ship.

    • Both (a) and (b).

    • None of these

    Correct Answer
    A. Both (a) and (b).
    Explanation
    A valid offer must have its terms definite and clear, meaning that the offer must clearly state the terms and conditions of the agreement. Additionally, it must be capable of creating a legal relationship, meaning that the offer must be serious and intended to create a legal obligation between the parties involved. Therefore, the correct answer is both (a) and (b).

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  • 10. 

    A general offer is one which is made to

    • Ascertained person.

    • Public at large

    • General relatives

    • Males or Females

    Correct Answer
    A. Public at large
    Explanation
    A general offer is one that is made to the public at large. This means that the offer is not specific to any particular person or group of people, but rather is open to anyone who meets the specified conditions or requirements of the offer. The offer is available to anyone who chooses to accept it, regardless of their relationship to the offeror or any other factors.

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  • 11. 

    The person to whom offer is made is known as Offeree or promise' and on acceptance, he is legally known as the

    • Promisor's agent

    • Acceptor

    • Acceptor on promisor's behalf

    • Acceptor for honour

    Correct Answer
    A. Acceptor
    Explanation
    The correct answer is "acceptor". In contract law, the person to whom an offer is made is known as the offeree or promisee. Once the offeree accepts the offer, they become the acceptor. The acceptor is legally bound to fulfill the terms of the contract and is responsible for carrying out the obligations outlined in the agreement.

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  • 12. 

    An agreement to agree in future is not a valid contract and cannot be enforced in court of law

    • True, as all the terms and conditions of contract must be finalized at the time of making the contract.

    • False, as such agreements are recognised in the Indian Contract Act.

    Correct Answer
    A. True, as all the terms and conditions of contract must be finalized at the time of making the contract.
    Explanation
    This statement is true because in order for a contract to be valid and enforceable, all the terms and conditions must be agreed upon and finalized at the time of making the contract. An agreement to agree in the future lacks the necessary specificity and certainty required for a valid contract. Therefore, it cannot be enforced in a court of law.

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  • 13. 

    An offer accepted without knowledge does not confer any legal rights on the acceptor

    • True, as the offer cannot be accepted without knowledge.

    • False, as there is no such legal provision

    Correct Answer
    A. True, as the offer cannot be accepted without knowledge.
    Explanation
    This answer is correct because in order for an offer to be validly accepted, the acceptor must have knowledge of the offer. Without knowledge of the offer, there can be no acceptance and therefore no legal rights conferred on the acceptor.

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  • 14. 

     A promised to buy a horse from B if it proved lucky. It is not a valid offer.

    • True, as it is a vague and loose offer i.e., uncertain offer

    • False,as A has expressed his willingness to obtain B's assent to his willingness to buy.

    Correct Answer
    A. True, as it is a vague and loose offer i.e., uncertain offer
    Explanation
    The given answer is true because the offer made by A to buy a horse from B is vague and uncertain. A promised to buy the horse only if it proved lucky, which is not a clear and definite condition. This makes the offer uncertain and not legally binding.

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  • 15. 

    Which of the following is the legal rule of a valid acceptance?

    • An acceptance must be give within prescribed or reasonable time.

    • An acceptance must be given before the lapse of offer.

    • An acceptance may be express or implied.

    • All of the these

    Correct Answer
    A. All of the these
    Explanation
    An acceptance must be given within a prescribed or reasonable time. This means that the person accepting the offer should do so within a timeframe that is either specified in the offer or within a reasonable timeframe based on the circumstances. An acceptance must be given before the lapse of the offer. This means that the acceptance must be communicated to the person making the offer before the offer expires or is revoked. An acceptance may be express or implied. This means that the acceptance can be communicated explicitly or can be inferred from the actions or behavior of the person accepting the offer. Therefore, the correct answer is "All of these" because all of these statements are true regarding the legal rule of a valid acceptance.

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  • 16. 

    A  _____ when accepted becomes a promise

    • Acceptance.

    • Obligation.

    • Proposal.

    • Cross offer.

    Correct Answer
    A. Proposal.
    Explanation
    When a proposal is accepted, it becomes a promise. A proposal is an offer or a suggestion made by one party to another, and when the receiving party accepts the proposal, it indicates their agreement and commitment to fulfill the terms of the proposal, thus turning it into a promise.

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  • 17. 

    The person making the offer is known as 'offeror'  or 'promisor' and to whom it is made is known as 

    • Acceptor

    • Acceptor for honour

    • Offeree or promise

    • C ontracting party

    Correct Answer
    A. Offeree or promise
    Explanation
    The correct answer is "Offeree or promise". In contract law, the person to whom an offer is made is known as the offeree or promise. They have the option to accept or reject the offer.

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  • 18. 

    Which of the following is not the legal requirement (i.e., essential element ) of a valid acceptance?

    • It must be communicated

    • It must be absolute and unconditional

    • It must be accepted by a person who has the authority to accept.

    • It must be presumed form silence if not communicated within specified time.

    Correct Answer
    A. It must be presumed form silence if not communicated within specified time.
    Explanation
    A valid acceptance must be communicated, absolute and unconditional, and accepted by a person with the authority to accept. However, it does not need to be presumed from silence if not communicated within a specified time. This means that silence cannot be considered as acceptance in the absence of communication within a specified time.

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  • 19. 

    A, by a letter , offers to sell his Motor cycle to B for Rs. 10,000 without knowing A's offsn. B by a letter, offers to buy the same motor cyde form A for Rs. 10,000 . Here,

    • A binding contract comes into existence as B's letter is equivalent to acceptance of offer.

    • No binding contract comes into existence as B's letter is nearly a cross offer.

    Correct Answer
    A. No binding contract comes into existence as B's letter is nearly a cross offer.
    Explanation
    The correct answer is "No binding contract comes into existence as B's letter is nearly a cross offer." This is because B's letter is not a clear acceptance of A's offer. Instead, it is a counter-offer, as B is offering to buy the motorcycle for the same price that A is offering to sell it. In order for a contract to be formed, there must be a clear acceptance of the original offer, without any additional terms or conditions. Since B's letter does not meet this requirement, there is no binding contract.

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  • 20. 

    A offered to sell the car to B for Rs. 1,00,000.But B offered to buy if for Rs.95,000. A refused to sell for Rs.95,000. Subsequently, B offered to purchase the car for Rs. 1,00,000. In this case,

    • A is bound to sell the car to B as he has accepted the offer of Rs. 1,00,000.

    • A contingent contract comes into existence which cab be enforced if no other person buys A's car/

    • No contract comes into existence as by offering Rs. 95,000, B has rejected the original offer.

    • B is guilty of breach of contract.

    Correct Answer
    A. No contract comes into existence as by offering Rs. 95,000, B has rejected the original offer.
    Explanation
    By offering Rs. 95,000, B has rejected the original offer of Rs. 1,00,000 made by A. When B later offers to purchase the car for Rs. 1,00,000, it is considered a new offer. A is not bound to accept this new offer as B had already rejected the original offer. Therefore, no contract comes into existence between A and B.

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  • 21. 

    A shopkeeper's catalouge of price and display of goods in a shop with price list attached is:

    • Valid offer to sell at printed/ listed price.

    • An invitation to receive offer at printed/listed price.

    • An offer to the public at large acceptable by any body.

    • An express offer to sell at printed/listed price.

    Correct Answer
    A. An invitation to receive offer at printed/listed price.
    Explanation
    The correct answer is "An invitation to receive offer at printed/listed price." This is because a shopkeeper's catalog with a price list attached is not considered a valid offer to sell at the printed/listed price. It is merely an invitation for customers to make an offer based on the listed prices. The shopkeeper has the discretion to accept or reject these offers.

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  • 22. 

    A sent his servant, B trace his missing nephew. After B left, A announced a reward of   Rs 5,000 for anybody who discovered  the boy. B discovered the missing boy without knowing about the reward. In this case 

    • B is not entitled to the reward as he did not know about the offer when he discovered the missing boy i.e., the offer to pay reward has not been communicated to him.

    • B is entitled to the reward as the offer has been communicated to him while sending him to trace missing boy.

    • No valid contract comes into existence as the offer of reward is not made to any specific him to trace missing boy.

    • Offer is not valid as unilateral contracts are not recognised.

    Correct Answer
    A. B is not entitled to the reward as he did not know about the offer when he discovered the missing boy i.e., the offer to pay reward has not been communicated to him.
    Explanation
    B is not entitled to the reward because he did not know about the offer when he found the missing boy. The offer to pay the reward was not communicated to him, so he cannot claim it.

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  • 23. 

    An offer may be revoked by the offeror at any time before the letter of acceptance is _____ by the acceptor.

    • Written

    • Read

    • Deposited in court

    • Posted.

    Correct Answer
    A. Posted.
    Explanation
    An offer may be revoked by the offeror at any time before the letter of acceptance is posted by the acceptor. This means that the offeror can change their mind and withdraw the offer as long as the acceptance letter has not been sent through the mail. Once the acceptance letter is posted, it is considered to be in transit and the offer cannot be revoked.

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  • 24. 

    A agreed to supply coal to a Railway Company and sent the draft agreement for approval to B, the authorized official of the Railway Company. B approved the draft agreement and put it in his table drawer. In This case.

    • A valid contract is concluded between the parties as the authorized official of the company has accepted the proposal.

    • No valid contract is concluded as the acceptance was not communicated.

    • A voidable contract is concluded which is voidable at A's option.

    • A void contact comes into existence on the agreement being kept in table drawer.

    Correct Answer
    A. No valid contract is concluded as the acceptance was not communicated.
    Explanation
    The correct answer is "No valid contract is concluded as the acceptance was not communicated." In order for a contract to be valid, acceptance of the proposal must be communicated to the other party. In this case, B approved the draft agreement but did not communicate this acceptance to A. Therefore, there was no valid contract concluded between the parties.

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  • 25. 

    A general offer of a continuing nature can be accepted by

    • The first hundred people

    • The first ten people

    • Any number of persons until it is retraced.

    • One person only who first accepts the offer

    Correct Answer
    A. Any number of persons until it is retraced.
    Explanation
    A general offer of a continuing nature means that the offer is open to acceptance by multiple individuals over a period of time. The correct answer, "Any number of persons until it is retraced," implies that the offer can be accepted by any number of people until someone retracts or withdraws their acceptance. This suggests that the offer remains open until someone decides to no longer accept it, regardless of the number of people who have already accepted it.

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  • 26. 

    A sent a telegram to B writing "will you sell me your Bumber Hall? Telegraph lowest cash price." B replied by telegram "lowest cash price for Bumber Hall  Rs.50 lakh ". A sent another telegram stating I agree to purchase Bumber Hall for Rs.50 lakh asked by you . Please send your title deeds". In this case no valid contract arises and B is not bound to sell the Bumber Hall for Rs.50 lakh because B's telegram starting lowest cash price is not.

    • Communicated to A

    • Made to obtain A's assent

    • An offer, but simply an answer to a question.

    • Acceptable being in telegram form.

    Correct Answer
    A. An offer, but simply an answer to a question.
    Explanation
    The telegram sent by B stating the lowest cash price for Bumber Hall can be considered as an offer because it includes a specific price and it is made with the intention to sell the property. However, it is not a valid offer because it is simply an answer to a question posed by A. In order for a valid contract to be formed, there must be a clear offer and acceptance, and in this case, B's telegram does not meet the requirements of a valid offer. Therefore, B is not bound to sell the Bumber Hall for Rs.50 lakh.

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  • 27. 

    A, by a letter, offers to sell his T.V to B for Rs. 10,000. Without knowing A's offer, B, by a letter, offers to buy the same T.V form A for Rs. 10,000. In this case.

    • A binding contract comes into existence as B's letter is equivalent the acceptance of A's offer

    • No binding contract comes into existence as B's letter is merely a cross offer

    • Both A and B will be guilty of breach of contract.

    • The contract would be enforceable only with the permission of the court.

    Correct Answer
    A. No binding contract comes into existence as B's letter is merely a cross offer
    Explanation
    In this scenario, B's letter offering to buy the TV for Rs. 10,000 is considered a cross offer. A cross offer occurs when both parties make identical offers to each other without knowledge of the other's offer. In this case, B's letter is not considered an acceptance of A's offer, but rather a new offer. Therefore, there is no binding contract that comes into existence between A and B.

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  • 28. 

    Which of the following statement is correct?

    • Revocation of acceptance is effective when it reaches the offeror before he receives the acceptance/

    • Acceptor may revoke his acceptance by a speedier mode of communication which reaches earlier than the acceptance itself.

    • Both (a) and (b) are correct.

    • Only statement (a) is correct.

    Correct Answer
    A. Both (a) and (b) are correct.
    Explanation
    Both statement (a) and (b) are correct. The revocation of acceptance is effective when it reaches the offeror before he receives the acceptance. Additionally, the acceptor may revoke his acceptance by a speedier mode of communication which reaches earlier than the acceptance itself.

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  • 29. 

    In which of the following cases, the principle of an offer to public at large was recognised?

    • Balfour v. Balfour

    • Harvey v. Facie

    • Carlill v. Carbolic Smoke Ball Co.

    • Both (a) and (b)

    Correct Answer
    A. Carlill v. Carbolic Smoke Ball Co.
    Explanation
    The principle of an offer to the public at large was recognized in the case of Carlill v. Carbolic Smoke Ball Co. In this case, the defendant company advertised a product that they claimed would prevent influenza and offered a reward to anyone who contracted influenza after using their product. The court held that the advertisement constituted a unilateral offer to the public at large, and the plaintiff, who had contracted influenza after using the product, was entitled to claim the reward. This case established the principle that an offer can be made to the public at large and can be accepted by anyone who meets the specified conditions.

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  • 30. 

    A, by a letter dated 15th March which reaches B on 17"1 March, offers to sell car to B. B posts his acceptance on 20th March which reaches A on 22nd March. In this case

    • A can revoke his offer before he receives the letter of acceptance.

    • A cannot revoke his offer as he has become bound by the acceptance on 20th March.

    Correct Answer
    A. A cannot revoke his offer as he has become bound by the acceptance on 20th March.
    Explanation
    Once B posts his acceptance on 20th March, the acceptance becomes effective and the contract is formed. A cannot revoke his offer after the acceptance has been posted, as he has become bound by the acceptance. The fact that A receives the acceptance letter on 22nd March is irrelevant, as the contract is already valid from the moment B posted his acceptance.

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  • 31. 

    Which of the following is the mode of lapse of offer?

    • Counter offer by offeree.

    • Rejection of offer by offeree.

    • Change in Law.

    • All of the above.

    Correct Answer
    A. All of the above.
    Explanation
    The mode of lapse of offer refers to the ways in which an offer can come to an end. In this case, all of the options mentioned - counter offer by the offeree, rejection of offer by the offeree, and change in law - can result in the lapse of an offer. A counter offer by the offeree indicates a rejection of the original offer and the presentation of a new offer. Similarly, the rejection of an offer by the offeree outright terminates the offer. Finally, if there is a change in law that renders the offer illegal or impossible to fulfill, the offer will also lapse. Therefore, all of the options listed are valid modes of lapse of offer.

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  • 32. 

    Which of the following statement is correct?

    • A bid at an auction is an implied offer to buy.

    • In a self-service restaurant there is an implied promise to pay for consuming eatables.

    • Both (a) and (b), as an implied offer valid and recognized under law.

    • None of these, as there is no valid offer in both the cases.

    Correct Answer
    A. Both (a) and (b), as an implied offer valid and recognized under law.
    Explanation
    Both statement (a) and (b) are correct because they state that there is an implied offer in both situations that is valid and recognized under the law. In an auction, when someone places a bid, it is considered an implied offer to buy the item being auctioned. Similarly, in a self-service restaurant, when someone consumes food, there is an implied promise to pay for it. Both of these actions are legally binding and enforceable.

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  • 33. 

    Which of the following statements is incorrect?

    • Acceptance of an offer is necessary to create legal relationship.

    • Acceptance is the consent given to the offer.

    • Acceptance can be presumed form acceptor's silence

    • Acceptance must be communicated to the offeror himself.

    Correct Answer
    A. Acceptance can be presumed form acceptor's silence
    Explanation
    Acceptance cannot be presumed from the acceptor's silence. In order for acceptance to be valid, it must be communicated to the offeror. Silence does not constitute acceptance unless there is an established agreement or custom between the parties that silence will be considered as acceptance.

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  • 34. 

    Which of the following statement is correct?

    • Revocation of offer, is effective when it reaches the offeree before he mails his acceptance.

    • Offeror may revoke his offer by a speedier mode of communication which reaches the acceptor before he posts his acceptance.

    • Both (a) and (b) are correct.

    • Only statement (a) is correct.

    Correct Answer
    A. Both (a) and (b) are correct.
    Explanation
    Both statement (a) and (b) are correct. This is because the revocation of an offer is effective when it reaches the offeree before they mail their acceptance. Additionally, the offeror has the right to revoke their offer by using a faster mode of communication that reaches the acceptor before they post their acceptance. Therefore, both statements accurately describe the correct conditions for the revocation of an offer.

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  • 35. 

    Which of the following is not legal requirement (  i.e., essential element  ) of a valid offer?

    • It must be communicated to the offeree.

    • It must be made with a view to obtain offeree's assent

    • It must express offeror's final willingness.

    • It must be made to a specific and not to public at large

    Correct Answer
    A. It must be made to a specific and not to public at large
    Explanation
    The correct answer is that the offer must be made to a specific person and not to the public at large. This means that the offer must be directed towards a particular individual or group of individuals, rather than being open to anyone who may come across it. This requirement ensures that there is a clear intention to enter into a contract with a specific party, and allows the offeree to understand that the offer is meant specifically for them.

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  • 36. 

    Which of the following are the essential elements of a valid offer?

    • It must be definite and certain.

    • It must express offeror's intension to be bound by his offer.

    • It must be made to a specific person and not to public at large.

    • It must be in the form of invitation to receive offer.

    Correct Answer
    A. It must be definite and certain.
    Explanation
    An offer must be definite and certain in order to be valid. This means that the terms and conditions of the offer must be clear and specific, leaving no room for ambiguity or misunderstanding. The offeror's intention to be bound by the offer must also be expressed, indicating that they are serious about entering into a contractual agreement. Additionally, the offer must be made to a specific person or group of individuals, rather than being a general offer made to the public at large. Finally, the offer may be in the form of an invitation to receive offers, indicating that the offeror is open to negotiating and receiving counteroffers.

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  • 37. 

    Which of the following statement is incorrect ?

    • An offer is the starting point in the making of anagreement

    • An offer is the proposal by one party to another to enter into a legally bindind agreement with him

    • An offer,which is valid,in itself is sufficient to create legal relationship without any response from the other party

    • An offer should be made with a view to obtain the asssent of the other person to the proposed act

    Correct Answer
    A. An offer,which is valid,in itself is sufficient to create legal relationship without any response from the other party
    Explanation
    This statement is incorrect because an offer, even if valid, is not sufficient to create a legal relationship without any response from the other party. In order for a contract to be formed, there must be acceptance of the offer by the other party. Both parties must agree to the terms of the offer in order for a legally binding agreement to be created.

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  • 38. 

    A ______is one which is made to public at large.

    • Specific Offer.

    • General Offer

    • Public Offer.

    • Universal Offer.

    Correct Answer
    A. General Offer
    Explanation
    A general offer is a type of offer that is made to the public at large. This means that the offer is not specific to a particular group or individual, but rather open to anyone who meets the conditions of the offer. It is a broad and inclusive offer that is accessible to a wide range of people.

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  • 39. 

    The term 'offer or proposal' in legal terms,is defined in

    • Section 2(a)

    • Section 2(b)

    • Section 2(i)

    • Section 2(j)

    Correct Answer
    A. Section 2(a)
  • 40. 

    In a contract through post, the Offeror becomes bound by the contract when the letter of acceptor's acceptance is

    • Posted to the offeror.

    • Received by the offeror.

    • Signed by the acceptor.

    • None of these.

    Correct Answer
    A. Posted to the offeror.
    Explanation
    In a contract through post, the Offeror becomes bound by the contract when the letter of acceptor's acceptance is posted to the offeror. This means that once the acceptor puts the acceptance letter in the mail and it is sent, the offeror is legally bound by the contract. The actual receipt of the letter by the offeror is not necessary for the contract to be valid.

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  • 41. 

    An offer may be revoked by the offeror at any time before the letter of acceptance is

    • Posted by the acceptor

    • Received by the offeror.

    • Read by the offeror.

    • None of these.

    Correct Answer
    A. Posted by the acceptor
    Explanation
    The correct answer is "Posted by the acceptor" because according to the given information, an offer can be revoked by the offeror before the letter of acceptance is received. Therefore, if the acceptance letter has been posted by the acceptor, it means that the offeror has not yet received it, and thus the offer can still be revoked.

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  • 42. 

    A offers to sell to B'a hundred tonnes of oil'. It is not a valid offer because 

    • It is not made to obtain B's assent.

    • It is uncertain as there is nothing to show what kind of oil is intended to be sold.

    • In does not express A's final willingness.

    • It is forbidden by law.

    Correct Answer
    A. It is uncertain as there is nothing to show what kind of oil is intended to be sold.
    Explanation
    The correct answer is "It is uncertain as there is nothing to show what kind of oil is intended to be sold." This is because the offer does not specify the type of oil that is being sold, leaving it unclear and ambiguous. Without this crucial information, B cannot fully understand or assess the offer, making it invalid.

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  • 43. 

    A person is said to make a proposal when he signifies to another his willingness to do or abstain form doing something with a view to

    • Inform the other person about his intention

    • Obtain the assent of that other person the proposed act or abstinence

    • Know the reaction of the other person

    • Obtain satisfaction by doing or abstain from doing the proposed act

    Correct Answer
    A. Obtain the assent of that other person the proposed act or abstinence
    Explanation
    The correct answer is "Obtain the assent of that other person the proposed act or abstinence." This means that when a person makes a proposal, they are seeking the agreement or approval of the other person for the suggested action or decision. The proposal is made with the intention of obtaining the consent or agreement of the other person.

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  • 44. 

    A, by a letter dated 15th March which reaches B on 17"1 March, offers to sell car to B. B posts his acceptance on 20th March which reaches A on 22nd March. A can revoke his offer before

    • 15th March.

    • 17th March.

    • 20th March.

    • 22nd March.

    Correct Answer
    A. 20th March.
    Explanation
    A can revoke his offer before 20th March because an offer can be revoked at any time before it is accepted. In this case, A's offer reached B on 17th March, but B's acceptance was not posted until 20th March. Therefore, A still had the opportunity to revoke the offer before receiving B's acceptance on 22nd March.

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  • 45. 

    A general offer made to the public at large is valid and a binding contract is made with a person who having the knowledge of the offer.

    • Comes forward and acts accordingly.

    • Acts accordingly and his act is ratified by the offeror.

    • Seeks offeor's permission to accept the offer

    • Informs the public that he is willing to accept the offer.

    Correct Answer
    A. Comes forward and acts accordingly.
    Explanation
    When a general offer is made to the public, it is considered valid and binding if a person with knowledge of the offer comes forward and acts accordingly. This means that the person accepts the offer by taking the necessary actions or steps as outlined in the offer. By doing so, they demonstrate their acceptance of the offer and create a legally binding contract with the offeror.

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  • 46. 

    The term 'acceptance' in legal terms is defined in

    • Section 2(a)

    • Section 2(b)

    • Section 2(i)

    • Section 2(f)

    Correct Answer
    A. Section 2(b)
  • 47. 

    Where the offer and acceptance are made by letters, the contract is complete at a place where the letter of acceptance  is

    • Written.

    • Signed.

    • Posted.

    • Received.

    Correct Answer
    A. Posted.
    Explanation
    When the offer and acceptance are made by letters, the contract is complete at the place where the letter of acceptance is posted. This means that once the letter of acceptance is put in the mail, the contract is considered complete and legally binding. This is because the act of posting the letter indicates the intention to accept the offer, and it is considered effective communication of acceptance. The actual receipt of the letter by the offeror is not necessary for the contract to be complete.

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  • 48. 

    Which of the following statement is incorrect?

    • An offer may be made to the world at large

    • An offer may be positive or negative.

    • An offer may be express or implied

    • An offer must be made to a specific person.

    Correct Answer
    A. An offer must be made to a specific person.
    Explanation
    The incorrect statement is "An offer must be made to a specific person." This is incorrect because an offer can be made to the world at large, meaning it is open to anyone who meets the specified conditions. An offer can also be made to a specific group or category of people.

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  • 49. 

    An acceptance may be revoked by the acceptor at any time before the letter of acceptance is

    • Posted by the acceptor.

    • Received by the offeror.

    • Signed by the acceptor.

    • None of these.

    Correct Answer
    A. Received by the offeror.
    Explanation
    An acceptance may be revoked by the acceptor at any time before the letter of acceptance is received by the offeror. This means that even if the acceptor has already signed the letter of acceptance, they can still revoke it as long as it has not been received by the offeror. Therefore, the correct answer is "Received by the offeror."

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Quiz Review Timeline (Updated): Apr 21, 2025 +

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  • Current Version
  • Apr 21, 2025
    Quiz Edited by
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  • Jul 01, 2011
    Quiz Created by
    Sweetsalman123

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