Practice Paper on Offer and Acceptance for CLAT 2020

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 Multiple choice questions​​  ​​​​ Q1. Principle: Acceptance of proposal must be the exact mirror image of the proposal.​​ Facts:​​ 'A'​​ made a proposal to​​ 'B'​​ to sell a chair for Rs. 500.​​ 'B'​​ is desirous of buying the said chair for Rs. 400.​​ (A) B has accepted the proposal of A.​​ (B) B has not accepted the proposal of A.​​ (C) It is not clear if B has accepted the proposal of A.​​ (D) It is not clear whether A made a proposal to B. ​​ ​​​​      [CLAT 2019] ​​ Q2.​​ Principle: Acceptance of a proposal must be absolute and unqualified.Facts: ‘A’ made a proposal to sell his motorcycle to ‘B’ for rupees 25,000/-. ‘B’ agreed to buy it for rupees 24,000/-. ‘A’ sold his motorcycle to ‘C’ for 26,000/- the next day. ‘B’ sues ‘A’ for damages.Which of the following is correct?​​ (A)​​ 'B'​​ will get damages from ‘A’(B)​​ 'B'​​ will get the difference of rupees 1,000/- only(C)​​ 'B'​​ can proceed against ‘C’(D)​​ 'B’ will not get any damages from ‘A’​​  ​​ ​​​​       [CLAT 2017]​​  Q3.​​ Principle: An offer made by one party when accepted by another makes it a​​ contract.Transactions:1. P offered to sell his house for Rs. 20 lakhs to R; R told P that he was interested to buy a house for 15 lakhs only.2. C was looking for a house for not more than 25 lakhs; P informed C that his house was available for 20 lakhs.3. K wanted to buy some old furniture; L told K that he would sell his furniture for Rs. 10,000.4. R advertised to sell his old car for a price of Rs. Three lakhs; S found the​​ advertisement and offered to buy it for Rs. 2 lakhs​​ ​​ 50​​ thousand; R agrees to sell it to S. Which among the above is actually a contract?(A) Situations 1 and 2 are contracts(B) Situation 4 only is a contract(C) Situation 3 only is a contract4. Situations 2 and 4 are contracts ​​ ​​ ​​​​        [CLAT 2017]​​  Q4.​​ Principle: The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.​​ Facts:​​ A​​ sent a letter making a proposal to B to purchase the house of B.​​ (A) The communication of proposal is complete when A sent the letter.​​ (B) The communication of proposal is complete when B‘s wife received it.​​ (C) The communication of proposal is complete when B‘s wife handed over the letter to B.​​ (D) The communication of proposal is complete when B reads the letter. ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ [CLAT 2019]​​  Q5.​​ Principle: An agreement may be entered into orally, in writing, or by conduct.​​ Facts:​​ 'A'​​ went to the shop of​​ 'B'​​ and picked a tooth brush and gave a cheque of Rupees twenty to B and left the shop.​​ (A) A entered into an agreement with B.​​ (B) A did not enter into an agreement with B.​​ (C) Payment of tooth brush cannot be made through a cheque.​​ (D) A should have carried a currency note of Rupees twenty to make the payment. ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ [CLAT 2019] Q6.​​ Principle: When one person signifies to another his willingness to do or to abstain from doing anything. with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. The expression of willingness/desire results in a valid proposal only when it is made/addressed to some person(s).​​ Facts: X makes the following statement in an uninhabited hall:​​ "I wish to sell my mobile phone for Rs l,000".​​ Which of the following​​ derivations is​​ correct?​​ (A) X made a statement that resulted in a promise.​​ (B)​​ X​​ made a statement that resulted in a proposal.​​ (C) X made a statement that did not result in any proposal.​​ (D)X​​ made a statement that resulted in an agreement.  ​​​​      [CLAT 2014]​​  Q7.​​ Principle:​​ A proposal (offer) should be made with an intention that after its valid acceptance. a legally binding promise or agreement will be created. The test for the determination of such intention is not subjective. rather it is objective. The intention of the parties is to be ascertained from the terms of the agreement and the surrounding circumstances under which such an agreement is entered into. As a general rule,​​ in the case of arrangements regulating social relations, it follows as a matter of course that the parties do not intend legal consequences to follow. On the contrary, as a general rule,​​ in the case of arrangements regulating business affairs,​​ it follows as a matter of course that the parties intend legal consequences to follow.​​  Facts: One morning while having breakfast,​​ X,​​ the father, says to his son​​ in a casual manner​​ "I shall buy a motorbike for you if you get through the CLAT".​​ Which of the following derivations is​​ correct?​​ (A) X made a statement that resulted in an enforceable promise.​​ (B) X made a statement that resulted in a valid proposal.​​ (C) X​​ made a statement that resulted in an enforceable agreement.​​ (D)​​ X made a statement that did not result in any enforceable agreement. ​​   [CLAT 2014]​​  Q8.​​ Principle: Acceptance (of offer) must be communicated by the offeree to the offeror so as to give rise to a binding obligation. The expression​​ "by the offeree to the offeror"​​ includes communication between their authorised agents.​​ Facts: X made an offer to buy Y's property for a stipulated price. Y accepted it and communicated his acceptance to Z,​​ a stranger.​​ Which of the following derivations is​​ correct?(A) Y's acceptance resulted in an agreement.​​ (B) Y's acceptance did not result in any agreement.​​ (C) Y's acceptance resulted in a contract.​​ (D) Y's acceptance resulted in a promise.  ​​​​       [CLAT 2014]​​  Q9.​​ Principle: When an offer is accepted by a person to whom it is made, it becomes a promise. But this promise will become legally binding only when the acceptance of the offer is unconditional.Facts: Ram makes an offer to sell his house to Shyam for Rs.​​ 50 lacs. Shyam accepts this offer but wants to pay the price of the house in five quarterly instalments. Ram does not agree to it. Thereafter Shyam agrees to pay the price of the house in the way as originally desired by Ram. But Ram does not reply to it. Can Shyam compel Ram to sell his house to him?(A) Shyam can compel Ram to sell his house because Shyam ultimately agrees to pay the price as originally desired by Ram.(B) Shyam can compel Ram to sell his house because Shyam in the first instance substantially complied with the desire of Ram.
(C) Shyam can compel Ram to sell his house because Ram’s offer does not exclude the payment of price in instalments.(D) Shyam cannot compel Ram to sell his house because Shyam imposes a new condition about payment of price of the house while accepting the offer which is not ultimately accepted by Ram.           [CLAT 2013]​​  Q10.​​ Principle: If a contract is made by post between two persons living in two different cities, then the contract is said to be complete as soon as the letter of acceptance is properly posted, and the place of completion of the contract is that city where acceptance is posted. It is worth mentioning here that in every contract there is always an offer from one party and the acceptance of the offer from the other party.Facts: Sani, a resident of Patna, gives an offer by post to sell his house for Rs. 25 lacs to Hani, a resident of Allahabad. This offer letter is posted on 1st January 2013 from Patna and reaches Allahabad on 7th January 2013. Hani accepts this offer and posts the letter of acceptance on 8th January​​ 2013 from Allahabad which reaches Patna on 16th January 2013. But Sani presuming that Hani is not interested in accepting his offer, sells his house to Gani at same price on 15th of January, 2013. Hani files a suit against Sani for the breach of contract in the competent court of Allahabad. Whether Hani will succeed?
A. Hani cannot succeed as Sani cannot be compelled by law to wait for the answer from Hani for an indefinite period of time.B. Hani cannot succeed as he could use some other effective and speedy mode for communicating his acceptance in minimum possible time.C. Hani can succeed as he properly posted the letter of acceptance and the delay was beyond his control.
D. Hani can succeed as contract became complete in the eyes of law on the date of posting the letter of acceptance.​​ ​​           [CLAT 2013]​​  Answer key with explanations​​ Question 1 - Option (B) is the correct answer.​​ Explanation - B did not accept the proposal of A as it is but gave a counter offer to purchase the chair for Rs. 400 hence, as per given principle, he did not accept A's proposal.Question 2 - Option (D) is the correct answer.​​ Explanation - Applying the given principle, it is clear that B never accepted the proposal of A but raised a counter offer which A never accepted hence B cannot claim any damages from A as a contract was never formed between A and B.​​  Question 3 - Option (B) is the correct answer.​​ Explanation - The acceptance of the offer has taken place only in situation 4 hence option (B) is the correct answer.​​  Question 4 - Option (D) is the correct answer.​​ Explanation - A's proposal comes to the knowledge of B only when B reads A's letter hence option (D) is correct.  ​​ ​​ ​​ ​​​​  Question 5 - Option (A) is the correct answer.​​ Explanation - The giving of cheque by A to B indicates that he intended to purchase the tooth brush from B's shop so, as per the given principle, option (A) is correct.​​ Question 6 - Option (C) is the correct answer.​​ Explanation - Since the hall in question was uninhabited, as per the given principle, A's statement did not result in any proposal because his statement was heard by no one.​​  Question 7 - Option (D) is the correct answer.​​ Explanation - As per the given principle, a statement made in casual manner by a father to his son shall not result in creation of an enforceable agreement.​​  Question 8 - Option (B) is the correct answer.Explanation - Y indicated his acceptance to Z who was​​ a complete stranger and​​ not an authorized agent of X thus, as per the given principle,​​ the acceptance shall not result in an agreement.​​  Question 9 - Option (D) is the correct answer.Explanation -​​ Shyam's acceptance of the offer with the condition to pay the amount in instalments​​ was a counter offer which had not been accepted by Ram. Shyam's subsequent willingness to pay the amount​​ in the manner desired by Ram​​ will not result in acceptance of Ram's original offer​​ as Shyam cannot compel Ram to stick to his original offer after having made a counter offer to him.  ​​​​  Question 10 - Option (D) is the correct answer.Explanation -​​ The given​​ principle indicates that formation of a contract is complete as soon as letter of acceptance has been posted so a contract had been formed between Sani and Hani on 8th January 2013 due to which option (D) is correct.  ​​ ​​ ​​​​ ​​  ​​​​    ​​  ​​ ​​ ​​​​   ​​ ​​ ​​ ​​ ​​ ​​​​  ​​ ​​ ​​​​              ​​  ​​ ​​​​   ​​   ​​ ​​  ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​  ​​​​       ​​ ​​ ​​ ​​ ​​​​ ​​   ​​​​  ​​​​  ​​​​ ​​  ​​ ​​ ​​ ​​ ​​​​ ​​ ​​ ​​ ​​  ​​  ​​ ​​ ​​ ​​ ​​​​  ​​ ​​ ​​​​  ​​ ​​ ​​ ​​ ​​​​ ​​ ​​  ​​ ​​​​ ​​  ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​​​ ​​  ​​​​ ​​  ​​​​  ​​ ​​ ​​ ​​ ​​ ​​​​ ​​  ​​  ​​​​ ​​ ​​  ​​​​  (function( $ ) { //footnotes $('.defaultNote').children(":first").css('cursor', 'pointer'); $('.defaultNote').children(":first").click(function(){ var gotoID = '#' + $(this).parent().attr('id'); $('html, body').animate( { scrollTop: $('a[href="' + gotoID + '"]').offset().top - 60, }, 250, 'linear' ) }); }(jQuery)); var numFormat = ",."; (function( $ ) { "use strict"; //do some cleaning on load var sortCells = $('td[data-sorting], th[data-sorting]'); sortCells.each(function(){ var first = $(this).text().trim().charAt(0); if (first == '@'){ var oldHTML = $(this).html(); var newHTML = oldHTML.replace('@', ''); $(this).html(newHTML); } }); function sortingTable(node, pos, ordBy){ var rows = node.children('tbody').children('tr').get(); rows.sort(function(a, b) { var X = $(a).children('td').eq(pos).text().toUpperCase(); var Y = $(b).children('td').eq(pos).text().toUpperCase(); if (numFormat != '.,'){ //we are dealing with a different locale and we need to do some //transformation in numbers X = convert2number(X); Y = convert2number(Y); } else { X = X.replace(/,/g, '').replace(/ /g, ''); Y = Y.replace(/,/g, '').replace(/ /g, ''); } var currencies = ['$', '¥', '£', '€']; var arrayLength = currencies.length; var XX = X; var YY = Y; for (var i = 0; i < arrayLength; i++) { XX = XX.replace(currencies[i], ''); YY = YY.replace(currencies[i], ''); } if (!isNaN(XX) && !isNaN(YY)){ var floatXX = parseFloat(XX); var floatYY = parseFloat(YY); return -(floatYY-floatXX) * ordBy; } else if (!isNaN(XX) && isNaN(YY)){ return -1 * ordBy; } else if (isNaN(XX) && !isNaN(YY)){ return ordBy; } else { if(X < Y) { return -1 * ordBy; } if(X > Y) { return 1 * ordBy; } return 0; } }); $.each(rows, function(index, row) { node.children('tbody').append(row); }); } function removeTableCellDecoration() { $("td[data-sorting], th[data-sorting]").removeClass('sortDecorator'); } //unbind the click event just in case we are loading more than one document $("td[data-sorting], th[data-sorting]").off('click'); $("td[data-sorting], th[data-sorting]").click(function(){ removeTableCellDecoration(); $(this).addClass('sortDecorator'); //get desired ordering var ordering = $(this).attr('data-sortOrdering'); if (ordering == 'ASC'){ var ordBy = -1; $(this).attr('data-sortOrdering', 'DESC'); } else { var ordBy = 1; $(this).attr('data-sortOrdering', 'ASC'); } var cellPosition = $(this).prevAll().length; var table = $(this).parents('table:first'); sortingTable(table, cellPosition, ordBy); }); function convert2number(str) { str = str.trim(); if (str.match(/^\d+/)) { //we have to take special care when the thousand separators are '.' var result_0 = str.replace(/\./g, '_@_'); var result_1 = result_0.replace(window.numFormat[0], '.'); var result = result_1.replace(/_@_/g, ''); result .replace(/ /g, ''); return result; } else { return str; } } }(jQuery));