Multiple Choice Questions:
1. Which of the following result/results in an offer?
(a) A declaration of intention
(b) An invitation to offer
(c) An advertisement offering reward to anyone who finds the lost dog of the advertiser
(d) An offer made in a joke.
Ans: (c) An advertisement offering reward to anyone who finds the lost dog of the advertiser
2. A specific offer can be accepted by —
(a) any person. (b) any friend of offerer.
(c) the person to whom it is made. (d) any friend of offeree.
Ans: (c) the person to whom it is made.
3. A letter of acceptance sufficiently stamped and duly addressed is put into course of transmission. There is —
(a) a contract voidable at the option of acceptor.
(b) a contract voidable at the option of offerer.
(c) no contract at all.
(d) a valid contract.
Ans: (d) a valid contract.
4. Acceptance may be revoked by the acceptor —
(a) at any time.
(b) before the letter of acceptance reaches the offerer.
(c) after the letter of acceptance reaches the offerer.
(d) before the death of the acceptor.
Ans: (b) before the letter of acceptance reaches the offerer.
5. An advertisement to sell a thing by auction is —
(a) an offer. (b) an invitation to offer. (c) no offer at all. (d) a contract.
Ans: (b) an invitation to offer.
6. On the face of the ticket for a journey the words “For conditions see back” are printed in small print. The passenger —
(a) is bound by the conditions whether he takes care to read them or not.
(b) is not bound by the conditions.
(c) may not take note of the conditions.
(d) none of the above.
Ans: (a) is bound by the conditions whether he takes care to read them or not.
7. An offer is made to Mani in a crowd. It —
(a) can be accepted by him alone.
(b) may be accepted by any person who hears it.
(c) may be accepted by his brother.
(d) may be accepted by his friends.
Ans: (a) can be accepted by him alone.
8. An acceptance is not according to the mode prescribed but the offerer decides to keep quiet. In such a case, there is—
(a) a contract. (b) no contract. (c) avoidable contract. (d) an unenforceable contract.
Ans: (a) a contract.
9. There is a counter-offer when —
(a) the offeree gives conditional acceptance or introduces a fresh term in acceptance.
(b) the offerer makes a fresh offer.
(c) the offeree makes some query.
(d) the offeree accepts it.
Ans: (a) the offeree gives conditional acceptance or introduces a fresh term in acceptance.
10. A makes an offer to B on 10th by a letter which reaches B on 12th. B posts letter of acceptance on 14th which reaches A on 16th.
The communication of acceptance is complete as against A on —
(a) 12th. (b) 14th. (c) 16th. (d) 10th.
Ans: (b) 14th.
Q.11. When is the communication of proposals, the acceptance of proposals and the revocation of proposals deemed to be made:
a) Only on clear verbal communication of such proposal, acceptance or revocation
b) By any act or omission of the party by which he intends to communicate such proposal, acceptance or revocation or has the effect of communicating it
c) Only when the proposal, acceptance or revocation of the proposal is recorded in writing
d) Only when the proposal, acceptance or revocation of the proposal is received and understood by the other party receiving the information
Ans: b) By any act or omission of the party by which he intends to communicate such proposal, acceptance or revocation or has the effect of communicating it
Q.12. When can a proposal be revoked:
a) Once a proposal is made, it cannot be revoked
b) Any time before or after the communication of acceptance is complete
c) Any time before the communication of its acceptance is complete as against the proposer, but not afterwards
d) Any time before the proposal comes to the knowledge of the other party, but not afterwards
Ans: c) Any time before the communication of its acceptance is complete as against the proposer, but not afterwards
True or False Questions:
1. When an offer is made to the world at large, it is called a specific offer. [False]
2. A social invitation, if it is accepted, creates legal relations. [False]
3. An advertisement for an auction sale amounts to an offer to hold such auction sale. [False]
4. An offer may contain a term the non-compliance of which may amount to acceptance. [False]
5. Acceptance once made cannot be revoked at all. [False]
6. A specific offer may be accepted by anyone. [False]
7. If the acceptance is not according to the mode prescribed and the offerer does not inform the offeree, he is deemed to have accepted the acceptance. [True]
8. Acceptance may in some cases precede an offer. [False]
9. Mental acceptance is not acceptance at all. [True]
10. If the parties without having agreed upon the terms of their contract have made an agreement to agree in future, there is a contract. [False]
11. The communication of an offer is complete when the letter of offer is posted. [False]
12. The communication of an acceptance is complete as against the acceptor when it is put in course of transmission. [False]
13. The communication of a revocation is complete as against the person to whom it is made when it comes to his knowledge. [True]
14. An offer stands revoked if the offeree fails to fulfil a condition precedent to acceptance. [True]
15. An offer can be revoked at any time before its acceptance is complete as against the offeror. [True]
16. If the letter of acceptance is posted in due time, the acceptor is not responsible for any casualties in the post office. [True]
17. A contract by telephone has the same effect as an oral agreement entered into between the parties when they are face to face. [True]
18. An offer lapses by the death of the offeree before acceptance. [True]