NSB PGDM(E) Business Laws Contract Act - Communication and Acceptance

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Questions and Answers

When is the communication of a proposal deemed to be made?

When the proposal is written

When the proposer intends to communicate the proposal (correct)

When the proposal is received by the other party

When the proposal is accepted

When is the communication of an acceptance considered complete as against the proposer?

When the acceptance is put in a course of transmission to the acceptor

When it comes to the knowledge of the proposer (correct)

When it is received by the proposer

When it is out of the power of the acceptor

As against the acceptor, when is the communication of an acceptance considered complete?

When it is out of the power of the acceptor (correct)

When it is received by the proposer

When it is put in a course of transmission to the proposer

When it comes to the knowledge of the proposer

When is the communication of a revocation considered complete as against the person who makes it?

When it is put into a course of transmission to the person to whom it is made Signup and view all the answers

When is the communication of a revocation considered complete as against the person to whom it is made?

When it is put into a course of transmission to the person who makes it Signup and view all the answers

In illustration (a), when is the communication of A's proposal considered complete?

When B receives the letter Signup and view all the answers

When is the communication of acceptance considered complete against A?

When the letter of acceptance is received by A Signup and view all the answers

Under what circumstances may a proposal be revoked?

At any time before the communication of its acceptance is received by the proposer Signup and view all the answers

How is a proposal revoked according to the text?

By the communication of notice of revocation by the proposer to the other party Signup and view all the answers

What is required for the acceptance to convert a proposal into a promise?

The acceptance must be absolute and unqualified Signup and view all the answers

Under what circumstances is an acceptance of a proposal implied?

When it is made otherwise than in words Signup and view all the answers

What happens if the proposer prescribes a manner for acceptance but the acceptance is not made in such manner?

The proposer may insist that his proposal shall be accepted in the prescribed manner within a reasonable time Signup and view all the answers

What constitutes an acceptance of a proposal according to the text?

Both performance of conditions and receiving consideration for a reciprocal promise offered with a proposal Signup and view all the answers

When is B's revocation of his acceptance complete?

When B's revocation letter reaches A Signup and view all the answers

Under what circumstances does a proposal lapse?

If no time is prescribed for its acceptance and it takes more than a reasonable time for communication of acceptance Signup and view all the answers

Study Notes

Communication of Proposal and Acceptance

The communication of a proposal is deemed to be made when it is received by the person to whom it is made.
The communication of an acceptance is considered complete as against the proposer when it is put into a course of transmission so as to be out of the power of the acceptor.

Completion of Communication

As against the acceptor, the communication of an acceptance is considered complete when it comes to the knowledge of the proposer.
The communication of a revocation is considered complete as against the person who makes it when it is put into a course of transmission so as to be out of the power of the person who makes it.
The communication of a revocation is considered complete as against the person to whom it is made when it is received by that person.

Illustrations and Examples

In illustration (a), the communication of A's proposal is considered complete when it is received by the person to whom it is made.
The communication of acceptance is considered complete against A when it is put into a course of transmission so as to be out of the power of the acceptor.

Revocation of Proposal

A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer.
A proposal is revoked by expressing the intention to withdraw it.

Acceptance of Proposal

The acceptance of a proposal must be absolute and unconditional to convert a proposal into a promise.
An acceptance of a proposal is implied when the offeree fulfills the conditions of the proposal.
If the proposer prescribes a manner for acceptance, and the acceptance is not made in such manner, it is not valid.

Constituents of Acceptance

An acceptance of a proposal constitutes a promise when it is absolute and unconditional.
B's revocation of his acceptance is complete when it is put into a course of transmission so as to be out of the power of B.

Lapse of Proposal

A proposal lapses when the time fixed for its acceptance has expired, or when the proposer or the offeree dies, or when the proposal is revoked.

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Description

Test your understanding of the communication, acceptance, and revocation of proposals according to the Contract Act as taught by CS Naresh Kumar Sinha. This quiz covers the communication of proposals, acceptance of proposals, and revocation of proposals and acceptances.