Offer and Acceptance – MCQ

Indian Contract Act 1872

Offer and Acceptance – MCQ

1. Which of the following is false? An offer to be valid must:

(a)     Contain a term the non-compliance of which would amount to acceptance

(b)     Intend to create legal relations

(c)     Have certain and unambiguous terms

(d)     Be communicated to the person to whom it is made

2. The police declares through a public address system to give a reward of Rs.10000 whoever gives information about a terrorist

(a)    Any person giving information can demand prize from Police

(b)    Any person hearing about the prize and giving information can demand prize from Police

(c)    No person can demand prize from the police

(d)    None of the above.

3. Panacea Ltd announced in newspapers that compensation of Rs.50,000 to be given to any person attacked by Hepatitis-A after using the company’s medicine according to its printed directions. Miss Verma used the medicine according to the directions of the company but contracted Hepatitis-A. She claimed the reward of Rs.50,000. Which of the following statements is correct?

(a)    The company has to pay the compensation of Rs.50,000 to Miss Verma

(b)    The company is liable to reimburse the cost of fresh medicine only

(c)    The company is not liable to pay anything to Miss Verma because the medicine was patented and proved to be successful in all other cases

(d)    The company is not liable to pay anything to Miss Verma because no acceptance was given by her.

4. Offer to public is known as :

(a)     Cross offer

(b)     Counter offer

(c)     General offer

(d)     Standing offer

5. When two parties exchange identical offers in ignorance at the time of each other’s offer, the offers are called:

(a)     Counter offer

(b)     Cross offer

(c)     General offer

(d)     Specific offer

6. A Counter Offer

(a)    Amounts to lapse of offer

(b)    Amounts to revocation of offer

(c)    Amounts to acceptance of the offer

(d)    None of the above.

7. A offers to buy Bs house on certain terms asking B to confirm within six weeks. B immediately writes to A accepting the offer after making some material alteration of the terms. B writes again within stipulated six weeks time, accepting the terms originally proposed by A

(a)    There is a contract between A & B as per original terms

(b)    There is a contract between A & B as per revised terms

(c)    No contract exists between A & B

(d)    None of the above.

8. A offers to sale his house to B for Rs. 15 lakhs. B said that he is prepared to buy it for Rs. 12 lakhs. This is a case of

(a)    Standing Offer

(b)    Conditional Offer

(c)    Counter Offer

(d)    Lapsed Offer.

9. Mr. R offers to sale his motor cycle for Rs. 25000 to Mr. Q, but Mr. Q agreed at a price of 20000 provided that Mr. R will service the motor cycle at his own cost also. This is an ………… offer made by Mr. Q

(a)    A counter offer

(b)    Revocable offer

(c)    Irrevocable offer

(d)    A cross offer.

10. A offered to sell his Maruti Car to B for Rs.1,00,000. B accepted offering Rs.50,000 in cash and a 60- day promissory note for the balance.”

(a)    There is a valid contract between A & B to sell the car at Rs.1,00,000      

(b)    There is no valid contract between A & B to sell the car

(c)    There is valid contract between A & B to sell the car at Rs.50,000 in cash & Rs.50,000 on 60 day promissory note,       

(d)    None of the above.             

11. When a person without expressing his final willingness proposes, certain terms on which he is willing to negotiate he makes:

(a)    Counter Offer

(b)    Standing Offer

(c)    Offer

(d)    Invitation to an Offer.

12. A enquires from B, “Will you purchase my cow for Rs 50000?” B replies, “I shall purchase your cow for Rs 50000 if you purchase my parrot for Rs 5000.” In this case:

(a)     B has accepted the offer of A

(b)     B has made a counter offer to A

(c)     A is bound by the actions of B

(d)     B cannot make such an offer

13. S agrees to sell his DVD player to R, promising to deliver it on the date of payment. R agrees to buy on condition to pay one month after delivery. This is an example of:

(a)     Void contract

(b)     Illegal contract

(c)     Unilateral contract

(d)     Counter Offer

14. An offer allowed to remain open for acceptance over a period of time is known as :

(a)     Standing offer

(b)     Continuing offer

(c)     Open offer

(d)     All of the above

15. An auctioneer in Bangalore advertised in a newspaper that a sale of office furniture would be held on September 30, 2008. A broker came from Kolkata to attend the auction, but all the furniture was withdrawn. The broker from Kolkata sued the auctioneer for his loss of time and expenses. Which of the following statements is/are correct?

(a)    The broker can claim compensation from the auctioneer for breach of contract

(b)    The broker will not succeed in getting compensation

(c)    An invitation to make an offer is a valid offer

(d)    A declaration by a person that he intends to do something, gives right of action to another.

16. Goods displayed in a shop window with a price label will amount to

(a)     Offer

(b)     Acceptance of offer

(c)     Invitation to offer

(d)     Counter offer

17. S offered a reward to anyone who returns his lost dog. F brought the dog to S without having heard of the offer. Which of the following is correct?

(a)     F is entitled to the reward

(b)     F is not entitled to the reward

(c)     S has to find the dog himself

(d)     No reward can be given for the return of lost dog

18. K proposes by letter to sale a piece of land to L for Rs. 10 lakhs. The letter is posted by K on 2nd May which was received by L on 9th May. L responded by the letter on 11th May which was received by K on 18th May. The communication of Offer is complete as against K on which date :

(a)    9th May

(b)    2nd May

(c)    11th May

(d)    18th May.

19. A, by a letter dated 10th January 2021, offers to sell his house to B for Rs. 40 Lacs. The letter reaches B on 17th January 2021, who posts his acceptance on 18th January 2021 which reaches A on 30th January 2021. Here, the communication of offer on the part of offeree is complete on:

(a)     18.01.2021

(b)     30.01.2021

(c)     17.01.2021

(d)     10.01.2021

20. On the 5th of a month, X makes an offer to Y by a letter, which reaches to Y on 6th. On the 7th, Y posts his letter of acceptance. Meanwhile, on the 6th X posts a letter to Y revoking the offer. On seeing it, Y sends a telegram to X on 8th confirming the acceptance given through his letter of the 7th. Discuss the legal effects of three letters and the telegram:

(a)     There is no contract between X and Y

(b)     The contract is concluded between X and Y on 7th when B posts the letter of acceptance

(c)     Either (a) or (b)

(d)     None of the above

21. When an offer automatically lapses?

(a)    If it is revoked by the offeror at any time before its acceptance

(b)    If the offeror or offeree dies or becomes insane and the other party comes to know of it before acceptance

(c)    If the offer is not accepted within the specified time or within a reasonable time

(d)    All of the above.

22. Pravin purchases ticket for watching a cricket match. When the match was going on, Pravin was hit by a ball (when the batsman hit a sixer) and sustained serious injuries. He files a suit for injuries caused to him against the cricked board, batsman and the auditorium. The defendants opposed the suit and denied to pay damages to Pravin. In the above context, which of the following statements is/are true?

(a)    Pravin impliedly accepted for all the risks involved in watching the cricket, hence not entitled to any damages

(b)    The cricket board is liable to pay damages to Pravin

(c)    The batsman is liable to pay the damages to Pravin

(d)    The management of the auditorium is liable to pay compensation and damages to Pravin.

23. A deposits his suitcase weighing 12 kg, containing money and valuables worth Rs.15,000, in railway cloak room. The cloakroom ticket states that the maximum responsibility of railway for lost item is Rs.100 per kg or Rs.1,000 maximum per article. The suitcase is lost from cloakroom. A claims Rs.15,000 for the actual loss.

(a)    A cannot claim anything for the loss of suitcase

(b)    A can claim Rs.1000 only for the loss of suitcase

(c)    A can claim Rs.1200 only for the loss of suitcase

(d)    A can claim Rs.15000 for the loss of suitcase.

24. In an auction sale, ‘X’ is the highest bidder. The auctioneer accepts the offer by not speaking but striking the hammer on the table. This amounts to:

(a)     Express acceptance

(b)     Implied acceptance

(c)     Silent acceptance

(d)     Mental acceptance

25. Communication of acceptance through post is complete as against the offeror when the letter of acceptance

(a)    Reaches the offeree

(b)    Is posted to the offeror                

(c)    Is in transit

(d)    Is signed by the offeree.

Communication of acceptance made by post is complete as against the offeror when the letter of acceptance is posted to him. Here options (a), (c) & (d) are incorrect.

26. Sagar, a resident of Pune, sent a letter of offer to Hari of Mumbai on March 01, 2021 to sale his house property in Mumbai for Rs.7,00,000. In that letter of offer, Sagar mentioned that he must inform his acceptance on or before March 31, 2021. Hari accepted the proposal and posted the letter of acceptance properly addressed and duly stamped on March 29, 2021. The letter of acceptance sent by Hari was lost in transit. On April 30, 2021 Sagar sold his house for Rs.8,00,000 to another party in Mumbai. Hari wants to sue Sagar for breach of contract. Which of the following statements is/are correct? 

(a)    As there is no contract between Sagar and Hari, Hari cannot succeed

(b)    Hari will succeed in his move as there is a valid contract between him and Sagar

(c)    The offer made by Sagar to Hari will be considered as revoked on loss of letter of acceptance in transit

(d)    Both (a) and (c) above. 

27. A selection committee of a university interviewed Mr. P, a candidate for the post of a lecturer and passed a resolution selecting Mr. P for the post. One of the committee members, acting in his individual capacity, informed Mr. P, about the selection made by the selection committee through resolution passed in its meeting. But Mr. P received no information from the university as regards his selection. Subsequently, the resolution was cancelled and Mr. P was not appointed for the post. In the above situation which of the following is true?

(a)        Mr. P can sue the committee member for the wrong information given by him and claim exemplary damages

(b)        Mr. P cannot sue the university

(c)        Mr. P can sue the university for breach of contract and claim damages and compensation

(d)        Both (a) and (c) above.