Indian Contract Act - Study Mode
[#976] A' asked 'B', "I want to purchase your bike. What will be the cost"? 'B' replied that the cost will not be less than Rs. 20,000. 'A' was interested to purchase it for Rs. 20,000. Which one of the following statement is correct?
Correct Answer
(C) There was proposal but no acceptance
[#977] A promised to pay his son B a sum of Rs 1 lakh if B passed CA exams in the first attempt. B passed the exam in the first attempt, but A failed to pay the amount as promised. B files a sit for recovery of the amount. State whether B can recover the amount under the Indian Contract Act, 1972.
Correct Answer
(C) B has no remedy against A
[#978] Authority of an agent
Correct Answer
(C) Can be expressed or implied
[#979] Read Assertion (A) and Reason (R) and give the correct answer by using the given below: Assertion (A): A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, But not afterwards. Reason (R): Section 5 of the Indian contract Act 1872, deals with the revocation of proposals and acceptances.
Correct Answer
(D) Both (A) and (R) are correct, and (R) is the correct explanation of (A)
[#980] A proposal is not revoked by
Correct Answer
(C) Death of the offerer even if the acceptor in ignorance of this fact sends communication of acceptance
Explanation
Solution: A proposal can be revoked in several ways under the Indian Contract Act, 1872. However, the death of the offerer does not automatically revoke the offer if the acceptor is unaware of it and has already sent the communication of acceptance. Therefore, the offer remains valid in such a case. Lapse of prescribed time: If a specific time is mentioned for acceptance, the offer is revoked once that time expires. ( Option A ) Lapse of reasonable time: If no time is prescribed, and a reasonable period passes without acceptance, the offer stands revoked. ( Option B ) Counteroffer: A counteroffer results in the original offer being revoked and replaced by a new offer. ( Option D ) Since death of the offerer does not revoke the offer if the acceptor is unaware and has accepted it, Option C is the correct answer.