Last Updated on: 9th June 2025, 01:53 pm
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
A valid must be definite, unambiguous, communicated and capable of making legal relationship on acceptance. But an offer cannot contain terms of non-compliance of which would amount to acceptance. Options (b), (c) & (d) are incorrect as they are true statement
Hence, option (a) is the correct answer because the statement in option (a) is false.
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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.
When the offer is made to world at large, without specifying any particular offeree it is called a General Offer. A general offer can be accepted by any person eligible to accept the offer, only after the person comes to the knowledge of the offer and accepts the conditions of the offer. So, in the given case, any person hearing about the prize of Rs.10,000 and giving information can demand prize from Police. Options (a), (c) & (d) are incorrect in this case.
Hence, option (b) is the correct answer.
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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.
Public announcement of compensation amounted to General Offer by Panacea Ltd. Miss Verma read the announcement, consumed the medicine as per instructions and contacted Hepatitis-A. So, Panacea Ltd is liable to pay Compensations to Miss Verma. Option (b) is not correct because the offer was for Compensation, not replacement of medicine. Option (c) is not correct, because Miss Verma contacted the Hepatitis after consuming the medicine. Option (d) is not correct as General Offer is deemed to be accepted on knowing about the offer. Options (b), (c) & (d) are incorrect in this case.
Hence, option (a) is the correct answer.
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4. Offer to public is known as :
(a) Cross offer
(b) Counter offer
(c) General offer
(d) Standing offer
When the offer is made to world at large, without specifying any particular offeree, it is called as General Offer. So, an offer to public in general is General Offer.
When two parties exchange similar offer on ignorance of each other’s offer, it is called a cross offer. This is not a case of General Offer. So, option (a) is not the correct answer.
When the offeree agrees to accept an offer subject to some conditions, offeree’s conditional acceptance is called a Counter Offer. This is not a case of Counter Offer. Hence, option (b) is not the correct answer.
An offer allowed to remain open for acceptance over a period of time is known as standing offer. This is not a case of Standing Offer. Hence, in this case, option (d) is not the correct answer. Options (a), (b) & (d) are incorrect in this case.
Hence, option (c) is the correct answer.
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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
When two parties exchange similar offer on ignorance of each other’s offer, it is called a cross offer.
When the offeree agrees to accept an offer subject to some conditions, offeree’s conditional acceptance is called a Counter Offer. So, the offer in this case is not a counter offer. Hence, option (a) is not the correct answer.
When the offer is made to world at large, without specifying any particular offeree then it is called as General Offer. So, the offer in this case is not a general offer. Hence, option (c) is not the correct answer.
When an offeror makes the offer to a specific offeree only then it is called as Specific Offer. So, the offer in this case is not a specific offer. Hence, option (d) is not the correct answer. Options (a), (c) & (d) are incorrect in this case.
Hence, option (b) is the correct answer.
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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.
When the offeree agrees to accept an offer subject to some conditions, offeree’s conditional acceptance is called a Counter Offer (not an acceptance). In such case, the original offer of the offeror gets invalidated and ceases to exist. Option (b) & (c) are not correct in this case. Options (b), (c) & (d) are incorrect in this case.
Hence, option (a) is correct.
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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.
When the offeree agrees to accept an offer subject to some conditions, offeree’s conditional acceptance is called a Counter Offer (not an acceptance). In such case, the original offer of the offeror gets invalidated and ceases to exist. In the given case, B accepts the offer made by A after making some material alterations. Consequently, the original offer lapses. So, there is no contract between A & B. Options (a), (b) & (d) are incorrect in this case.
Hence, option (c) is correct.
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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.
When the offeree agrees to accept an offer subject to some conditions, offeree’s conditional acceptance is called a Counter Offer (not an acceptance). In such case, the original offer of the offerer gets invalidated and ceases to exist. In the given problem, A offers to sale his house to B for Rs. 15 lakhs. But, B, the offeree, accepts the offer subject to the condition that he will buy it for Rs.12 lakhs. So, this is a case of Counter Offer. Options (a), (b) & (d) are incorrect in this case.
Hence, option (c) is correct.
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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.
When the offeree agrees to accept an offer subject to some conditions, offeree’s conditional acceptance is called a Counter Offer (not an acceptance). In such case, the original offer of the offerer gets invalidated and ceases to exist. In the given problem, Mr. R offers to sale his motor cycle for Rs. 25000 to Mr. Q. But, Mr. Q, the offeree, accepts the offer subject to some conditions that he will buy it for Rs.20,000 and Mr. R will service the motor cycle at his own cost. So, this is a case of Counter Offer. Options (b), (c) & (d) are incorrect in this case.
Hence, option (a) is correct.
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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.
When the offeree agrees to accept an offer subject to some conditions, offeree’s conditional acceptance is called a Counter Offer (not an acceptance). In such case, the original offer of the offerer gets invalidated and ceases to exist. So, the options (a) (c) & (d) are incorrect.
Hence, option (b) is the correct answer
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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.
When a person, without expressing his final willingness proposes certain terms on which he is willing to negotiate, then he makes a Counter Offer. Counter offer by the offeree terminates the original offer. Options (b), (c) & (d) are incorrect in this case.
Hence, option (a) is the correct answer.
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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
When the offeree agrees to accept an offer subject to some conditions, offeree’s conditional acceptance is called a Counter Offer (not an acceptance). In this case B has made a counter offer to A. Options (a), (c) & (d) are incorrect in this case. Options (a), (c) & (d) are incorrect in this case.
Hence, option (b) is the correct answer.
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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
When the offeree agrees to accept an offer subject to some conditions, offeree’s conditional acceptance is called a Counter Offer (not an acceptance). So, this is an example of Counter Offer.
An agreement which is not enforceable by law is called as void contract. A contract which is prohibited by any law in force is an illegal contract. A contract in which one party has performed his obligation while the other party has yet to perform his obligation is called as Unilateral Contract. So, options (a), (b) & (c) are incorrect in this case.
Hence, option (d) is the correct answer.
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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
An offer allowed to remain open for acceptance over a period of time is known as standing offer or continuing offer or open offer. Normally such offer is known as Standing Offer, but sometimes they are also called Contnuing Offer or Open Offer. So, options (a), (b) & (c) are incorrect in this case.
Hence, option (d) is the correct answer.
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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.
When the party fails to express his last willingness, but only proposes certain terms on which he is ready to negotiate, he does not make an offer, but invites. An invitation of offer is not a valid offer. The advertisement by Auctioneer amounts to Invitation of Offer. So, the broker will not succeed in getting compensation as no binding contract is created. So, options (a), (c) & (d) are incorrect in this case.
Hence, option (b) is the correct answer.
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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
An offer to invite offer is called an invitation to offer, it is not an Offer. Goods displayed in shop window with price label amounts to Invitation to offer to prospective customers to make offer to buy goods. Hence option (a) is not correct. As there is no offer, hence no acceptance of offer, nor there is counter offer. Hence, option (a), (b) or (d) is not the correct.
Hence, option (c) is the correct answer.
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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
F did not know about the reward. So, there was no communication of offer, hence no valid offer to F. So, no valid acceptance of offer, So, F is not entitled to the reward. So, options (a), (c) & (d) are incorrect in this case.
Hence, option (b) is the correct answer.
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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.
On the part of the offerer, the communication of Offer is complete when the process of communication starts beyond his control (e.g. when he posts a letter of offer). So, the communication of offer is complete as against K when he posted the letter of offer i.e. on 2nd May. So, options (a), (c) & (d) are incorrect in this case.
Hence, option (b) is the correct answer.
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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
The communication of Offer on the part of offeree is complete when he receives the communication of offer (e.g. when he receives a letter of offer). In this case, B, the offeree, has received the letter of offer on 17.01.2021. So, the communication of Offer on the part of offeree completes on 17.01.2021. So, options (a), (b) & (d) are incorrect in this case.
Hence, option (c) is the correct answer.
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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
Revocation of offer is effective only if it is made before the offer is accepted. In case of contracts by post, the communication of acceptance is complete against the offeror, i.e., before the letter of acceptance is duly posted by the offeree. In the given case, X posts a letter to Y revoking the offer on the 6th i.e., before the date of posting the letter of acceptance by Y. So, there is no contract between X and Y. Options (b), (c) & (d) are incorrect in this case.
Hence, option (a) is the correct answer.
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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.
An offer comes lapses when if it is revoked by the offeror at any time before its acceptance. An offer comes lapses if the offeror or offeree dies or becomes insane and the other party comes to know of it before acceptance. An offer comes lapses if not accepted within the specified time or within a reasonable time. So, the statements under the options (a), (b) & (c ) are not true
Hence, option (d) is correct.
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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.
When the Acceptor does not expressly communicate the acceptance, but the acceptance is implied by the act or conduct of the offeree, then it is called as Implied Acceptance. In the present case, though Pravin did not agree specifically, but, the purchase of ticket to watch the match implies that he is ready for the risk involved in it. Hence, the cricket board or the batsman or the management of the auditorium are not liable for the loss caused to Pravin.
So, the statements under the options (b), (c ) and (d) are not correct.
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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.
The railway department’s declaration on the ticket that they are responsible for any lost item upto Rs.100 per kg. or Rs.1,000 maximum per article constitutes the offer by Railway for Cloakroom Service. Deposit of suitcase by A in cloakroom is implied acceptance. Hence, a contact is created as per terms stated in the cloakroom ticket. Hence, A can claim Rs.1000 only for the loss of suitcase (the maximum amount per Article). Hence options (a), (c) & (d ) are incorrect.
Hence, option (b) is the correct answer.
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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
Hammering by Auctioneer is a recognized custom of indicating acceptance of a bid in an Auction. So, this is an implied acceptance.
Here the auctioneer does not expressly communicate the offer. So, this is not an express acceptance. Hence, option (a) is not the correct answer.
It is not a silent acceptance, there is action by hammering. Hence, option (c) is not correct.
Similarly, this is not a mental acceptance. Hence, option (d) is not the correct answer.
Hence, option (b) is the correct answer.
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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.
Hence, option (b) is correct.
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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.
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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.
Mr. P cannot sue the university because there is no clear and unambiguous offer by one party and acceptance by the other party to constitute a valid contract. University has not communicated passing of resolution, to Mr. P. Hence, there is no contract binding on the university. Here options (a) & (c) are incorrect and so the option (d) is also incorrect.
Hence option (b) is the correct answer
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