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Offer and Acceptance Questions and Answers

Answer: C

The option that is not associated with Section 2 is the one stating that the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. That rule is in Section 4, which deals with the communication, acceptance and revocation of proposals.

The other three are definitions in Section 2: the proposal in clause (a), the acceptance and promise in clause (b), and the agreement in clause (e), where every promise and every set of promises forming the consideration for each other is an agreement.

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2.

Tender is :

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: D

A tender is an invitation to offer.

When a government department or company invites tenders, it is not making an offer that the first bidder can accept. It is inviting offers: each tender submitted is the offer, and the contract arises only when the authority accepts one of them, usually with freedom to reject any or all.

The notice is therefore not a promise or an offer, and a counter-offer is a reply to an offer that varies its terms, which is a different thing. The same reasoning treats goods on display and catalogues as invitations to offer.

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3.

Read Assertion (A) and Reason (R) and with the help to codes given below, point out the correct explanation :

Assertion (A) : An acceptance is to a proposal what a lighted match is to a train of gunpowder.

Reason (R) : Acceptance converts the offer into a promise and then it is late to remove.

Exam Year(s)

MH SET - 2019, SET Exam - 2019,

Answer: A

Both A and R are true and R is a good explanation of A.

The assertion is Sir William Anson's well-known image: an acceptance is to an offer what a lighted match is to a train of gunpowder. It produces something that cannot be recalled or undone. The reason states why: once the offer is accepted it becomes a promise, a binding agreement, and it is then too late to withdraw it.

So R gives exactly the ground for A's comparison, which rules out the option saying it is not a good explanation, and both options treating one statement as false.

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4.

Read Assertion (A) and Reason (R) and with the help of the codes given below point out the correct explanation.

Assertion (A) : An article displayed at the window of shop is only on invitation to make an offer.
Reason (R) : The person pick the article and tender at shopkeeper to purchase is an offer based on the price tag.

Exam Year(s)

MH SET - 2020, SET Exam - 2020,

Answer: A

Both (A) and (R) are correct, and (R) is a good explanation of (A).

Goods displayed in a shop window or on shelves with price tags are an invitation to treat, an invitation to customers to make offers, not an offer themselves. In Pharmaceutical Society of Great Britain v. Boots Cash Chemists (1953), the court held that the customer makes the offer by taking the article to the cashier and tendering the price, and the shopkeeper accepts it at the counter.

The Reason states exactly that the customer's tender is the offer, which is why the display can only be an invitation, so it explains the Assertion. Hence the options treating either statement as false, or the Reason as unrelated, are wrong.

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5.

Read Assertion (A) and Reason (R) and with the help of codes given below, point out the correct explanation.

Assertion (A) : An offer is the expression of the offerer to do or abstain from doing something.
Reason (R) : It should be made with a view to obtaining the assent of the offeree to the proposed act or abstinence.

Exam Year(s)

MH SET - 2021, SET Exam - 2021,

Answer: A

Both (A) and (R) are true and (R) is a good explanation of (A).

Section 2(a) of the Indian Contract Act, 1872 defines a proposal: when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. The Assertion states the first half and the Reason the second.

The Reason supplies the purpose that turns a mere statement of willingness into an offer, so it explains the Assertion rather than merely standing beside it. Neither statement is false, which rules out the last two options.

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