Chapter 2 - Offer, acceptance and revocation

Question 1

The law governing the contracts between persons is:

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Answer 1

Contract Act 1872

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Question 2

What is a ‘proposal’

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Answer 2

When a person shows willingness to perform something or stop from performing something with a view of getting something in return.

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Question 3

What is ‘acceptance’?

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Answer 3

When a person to whom the proposal is made signifies willingness to do or to refrain from doing something.

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Question 4

Proposal + Acceptance= ?

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Answer 4

Promise

It is not a contract yet, as contract needs further elements.

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Question 5

What is consideration?

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Answer 5

Anything of value from one party to another party

payment of an amount for purchase of goods is consideration for another

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Question 6

Promise + Consideration =

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Answer 6

Agreement

Still not a contract. Needs further elements

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Question 7

Rancho offers to buy a kite from Daas for Rs. 1000. What is the consideration for Rancho in this?

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Answer 7

Kite

Something of value is consideration. Kite is what is required by Rancho.

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Question 8

What are the requirements of a valid offer?

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Answer 8

1. Contractual Intention
2. Certainty (unambiguity)
3. Communication of offer to the offeee

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Question 9

What is the presumption of contract under intention?

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Answer 9

1. No intention in social / domestic relationship
2. Intention in commercial / business relationship

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Question 10

Examples of invitation to treat / offer.

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Answer 10

1. Price list of items on website
2. Advertisment on social media
3. Winter sale mention on billboards

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