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Communication of Offer and Acceptance for CLAT - Practice Questions & MCQ

Edited By admin | Updated on Sep 25, 2023 25:47 PM | #CLAT

Quick Facts

  • 21 Questions around this concept.

Solve by difficulty

Passage 6

Read the following passage and answer the questions.

Communication is the very essence of any agreement which later becomes a contract; it signifies our willingness, be it in terms of an offer or acceptance. Communication also plays a vital role in revocation of an offer or acceptance. Offer is the building block of any contract which is complemented by acceptance, due consideration, consensus ad idem, intention etc.; all these things are incomplete without proper communication and even if communication of one of the things is not absolute then the agreement will be deemed to be invalid on the grounds of uncertainty. If any of these things are not done in the proper manner as stipulated by ICA, 1872 then it can lead to legal consequences. Once the communication of offer and acceptance is done, it becomes an agreement. Indian Contract Act, 1872- When one person signifies to another his willingness to do or abstain from doing something, with a view to obtain his assent of that other to such act or abstinence, he is said to make a proposal which is also known as ``offer.” Here the word “signifies” becomes important as without communication there can be no offer. Illustration- A signifies his willingness to sell his car to B for rupees 2 lakhs, this is an offer. If A will keep this in his mind only and will not communicate it to B, it will never become an offer. Knowledge of a proposal is a must, the proposal must be communicated or the acceptor should have the knowledge of the proposal in order to accept. As mentioned, communication is the building block of any contract, without this there cannot be a contract. The communication must be made properly and should be free of uncertainties and, therefore, it should be very clear in its entirety. Offer and acceptance cannot exist in silence and, hence, needs to be properly communicated; if not, the agreement will be void. Moreover, the offer needs to be proposed properly and the acceptance must be absolute in nature. Similarly, revocation should be made properly as ineffective or late communication of revocation would amount to it being non-existent in nature and the initial offer or acceptance will prevail. Lastly, the contract comes into existence or is made at the place where the communication of its acceptance is received.

Question : Aman goes on the terrace of raj and cleans it properly by working 3 hours on it without asking raj. He showed up at Raj’s house asking Rs. 1,000 for working on his terrace. Will Raj be liable to pay Aman Rs.1,000 to Aman?

 

Passage 6

Read the following passage and answer the questions.

Communication is the very essence of any agreement which later becomes a contract; it signifies our willingness, be it in terms of an offer or acceptance. Communication also plays a vital role in revocation of an offer or acceptance. Offer is the building block of any contract which is complemented by acceptance, due consideration, consensus ad idem, intention etc.; all these things are incomplete without proper communication and even if communication of one of the things is not absolute then the agreement will be deemed to be invalid on the grounds of uncertainty. If any of these things are not done in the proper manner as stipulated by ICA, 1872 then it can lead to legal consequences. Once the communication of offer and acceptance is done, it becomes an agreement. Indian Contract Act, 1872- When one person signifies to another his willingness to do or abstain from doing something, with a view to obtain his assent of that other to such act or abstinence, he is said to make a proposal which is also known as ``offer.” Here the word “signifies” becomes important as without communication there can be no offer. Illustration- A signifies his willingness to sell his car to B for rupees 2 lakhs, this is an offer. If A will keep this in his mind only and will not communicate it to B, it will never become an offer. Knowledge of a proposal is a must, the proposal must be communicated or the acceptor should have the knowledge of the proposal in order to accept. As mentioned, communication is the building block of any contract, without this there cannot be a contract. The communication must be made properly and should be free of uncertainties and, therefore, it should be very clear in its entirety. Offer and acceptance cannot exist in silence and, hence, needs to be properly communicated; if not, the agreement will be void. Moreover, the offer needs to be proposed properly and the acceptance must be absolute in nature. Similarly, revocation should be made properly as ineffective or late communication of revocation would amount to it being non-existent in nature and the initial offer or acceptance will prevail. Lastly, the contract comes into existence or is made at the place where the communication of its acceptance is received.

Question : Which among the following define Communication of offer?

 

Read the following passage and answer the question.

The law relating to 'offer' and 'acceptance' is not simple.

In Hamilton, Rau and Winthraub on Contracts, the learned authors referred to a decision of Habaska Seed Co. Vs. Harsh 98 Nob 89, 152 NW 310 wherein the purported offer "I want $ 2.25 cent per cent for this seed fobcowell," was held not be an offer on the ground that the defendant did not say "I offer to sell you.

"The rules of offer and acceptance are usually favourites of law students; they are easily stated and tend to be rather mechanical in their operation. They also involve situations that are relatively easy to grasp and in which various policy consideration are close to the surface. However, one should not assume that one has mastered the law of contracts simply because one is conversant with rules of offer and acceptance. Indeed the writings of modern contracts scholars tend to deprecate the importance of the rules of offer and acceptance.

Meaning of offer. An offer is an expression by one person or group of persons or by agents on his behalf, made to another, of his willingness to be bound to a contract with that other on terms either certain or capable of being rendered contain.

An offer may be made to an individual or to a group of persons or to the world at large. It may be made expressly by words, or it may be implied from the product of the offerer."

"It has been established ever since the case of Payne v Cave in 1789 that recovation is possible and effective at any time before acceptance: up to this moment ex hypothesis no legal obligation exists. Nor, as the law stands, is it relevant that the offeror has declared himself ready to keep the offer open for a given period. Such an intimation is but part and parcel of the original offer, which must stand or fall as a whole. The offeror may, of course, bind himself, by a separate and specific contract, to keep the offer; but the offeree, if such is his allegation, must provide all the elements of a valid contract, including assent and consideration. In Routledge v Grant the defendant offered on 18 March to buy the plaintiff's house for a certain sum, 'a definite answer to be given within six weeks from the date'. Best CJ held that the defendant could withdraw at any moment before acceptance, even though the time limit had not expired. The plaintiff could only have held the defendant to his offer throughout the period, if he had bought the option by a separate and binding contract."

Question:

A visits a bar and gets completely drunk and makes an offer to B that he will buy his watch for Rs. 10 lakhs, and B subsequently accepts it, then:

 

 

Read the following passage and answer the question accordingly.

The substantive law governing criminal activities in India is the Indian Penal code (IPC), 1860. The provisions related to Criminal intimidation, Insult and Annoyance (herein referred as CIIA) has been dealt with in chapter XXII of the Code consisting of section 503-510. The chapter broadly describes five types of offences. The offence of Criminal Intimidation is defined in section 503 of IPC. The Provisions states that any person who threatens another person on bellow mentioned grounds is liable for criminal intimidation (a)Threatens injury to his person (b) Threatens injury to his reputation (c) Threatens injury to his property (d)Threatens injury to the person or reputation of anyone in whom the person has vested interest to make such person do any illegal act or omit any act he is legally authorized to do in order to escape such fear of threat. To make one penalize for criminal intimidation, the following two essentials must be fulfilled, (a)There must be a fear of threat to a person's body, reputation and possession or to whom he is most concerned. (b) The nature of fear of threat should be caused with the intention to abstain or to perform certain activities to avoid such threats.

Section 506 contains the punishment for criminal intimidation. Section 507 of the Indian Penal Code, 1860 is an aggravated form of intimidation. This section covers instances wherein the intimidator commits the offence anonymously. This section states that whoever indulges into the act of criminal intimidation by anonymous communication or takes precautions to conceal his identity or abode shall be punished with imprisonment, which may extend up to two years. This punishment is in addition to the punishment provided for the offence under Section 506 of the IPC, 1860.

Question:

A, threatens B to kill a homeless man if he does not give him his wallet, then

 

 

Son of A was absconded and A had sent his servants to different places to search for his son. B was one of the servants; meanwhile the search was going on, the defendant made an offer that anyone who would find his son would be awarded with money. This was not communicated to the B neither did he have the knowledge of such a proposal. B found the son and tried to claim the money to which he was refused. Decide

Concepts Covered - 1

Communication of Offer and Acceptance

Communication of Offer:

  • Definition: An offer is a proposal made by one party (the offeror) to another (the offeree) with the intent to create a legally binding contract.
  • Revocability of Offer: It's important to note that an offer can generally be revoked at any time before it is accepted, provided that the revocation reaches the offeree before or at the same time as the acceptance. Once the offeree communicates acceptance, a contract is formed.

Example 1:

  • Offer: A sends a message to B, offering to sell his laptop for Rs. 30,000.
  • Communication of Offer: The offer is communicated when A sends the message to B.

Communication of Acceptance:

  • Definition: Acceptance is the unequivocal agreement by the offeree to the terms of the offer. The acceptance must be in line with the terms of the offer, known as the "mirror-image rule." In India, silence usually does not amount to acceptance unless there is a specific understanding or custom indicating otherwise.
  • Modes of Acceptance: Acceptance can be communicated through various means, including verbal communication, written communication (such as an email or letter), or even through conduct (if the conduct clearly indicates acceptance).

Example 2:

  • Offer: A sends an email to B, offering to sell his car for Rs. 5,00,000.
  • Acceptance: B replies to the email, stating, "I accept your offer of Rs. 5,00,000 for the car."
  • Communication of Acceptance: B's reply effectively communicates acceptance to A.

Communication of Revocation:

  • Definition: Revocation is the withdrawal of an offer by the offeror before it is accepted. Like acceptance, revocation must also be effectively communicated to the offeree.
  • Revocation's Timing: The offeror can revoke the offer at any time before acceptance, but the revocation must reach the offeree before or at the same time as the acceptance to be valid.

Example 3:

  • Offer: A sends a letter to B, offering to rent his apartment for a year.
  • Revocation: A sends another letter to B two days later, stating, "I've changed my mind; the apartment is no longer available for rent."
  • Communication of Revocation: The revocation is effective when it reaches B, provided B hasn't already accepted the offer.

Case Law Example: Ramsgate Victoria Hotel v. Montefiore" (1866)

While it is an English case, its principles have been followed in Indian jurisprudence and can serve as a useful example to understand the communication of offer and acceptance. Here's a brief explanation of the case:

  • Facts of the Case
    • The plaintiff, Montefiore, made an offer to purchase shares in the Ramsgate Victoria Hotel company.
    • Montefiore's offer was made on June 8th, 1866.
    • The directors of the company did not accept the offer immediately and, in fact, did not respond at all until November 23rd, 1866.
    • In the meantime, Montefiore had changed his mind and had sold his shares to a third party.
  • Legal Issue
    • The main legal issue in this case was whether Montefiore's offer to purchase the shares had lapsed or remained open for acceptance after such a long delay by the company's directors.
  • Ruling and Significance
    • The court held that Montefiore's offer had lapsed due to the substantial delay in acceptance.
    • The court stated that an offeror's offer may lapse if it is not accepted within a reasonable time.
    • The delay of nearly five months in this case was considered unreasonable, and the offer was no longer valid.
    • Therefore, Montefiore was not obligated to sell his shares to the company, as he had sold them to a third party in the interim.

Application and Significance in Indian Contract Law

  • The principles established in the "Ramsgate Victoria Hotel v. Montefiore" case have been applied in Indian contract law as well. 
  • The case illustrates that an offer, if not accepted within a reasonable time, may be considered lapsed, and the offeror is no longer bound by it. 

Indian Constitution:

  • Understanding contract law, including the communication of offer and acceptance, is vital for individuals and businesses exercising their right to carry on any occupation, trade, or business under Article 19(1)(g) of the Indian Constitution. 
  • Contracts are the foundation of many commercial activities, and legal clarity is crucial to protect the interests of parties involved.

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