CLATapult TM Worksheet no.

CTPT/LeR/03

Contracts-Offer/Acceptance/Revocation

1. 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.
FACT: Ramanuj telegrammed to the shyamsunder, writing “will you sell me your Rolls Royce Car?
Telegram the lowest cast price”. Shyamsunder replied, too by telegram “lowest price for car is Rs. 20
lacs”. Ramanuj immediately sends his consent through telegraph stating, ‘I agree to buy the car for Rs. 20
lacks asked by you. Now shyamsunder refused to sell the car. .
(a) He cannot refuse to sell the car because the contract has already been made.
(b) He can refuse to sell the car because it was only invitation to offer and not the real offer.
(c) it was not a valid offer because willingness to enter into a contract was absent.
(d) none of the above.

2.PRINCIPLE: agreements the meaning of which is not certain or capable of being made certain are
void. FACT: A horse was bought for a certain price coupled with a promise to give Rs. 500 more if
the horse proved lucky.
(a) This is a valid agreement.
(b) This agreement is void for uncertainty because it is very difficult to determine what luck, bad or
good the horse had brought to the buyer.
(c) the agreement is partially valid and partially void.
(d) None of the above.

(Principles for Q3-Q6)

Principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make
a binding contract, not only that the proposal be accepted, but also that the acceptance be notified
to the proposer.
3. Facts: D sent his servant P to trace his missing nephew. D in the meantime announced a reward for
providing information about the missing boy. P, in ignorance of the announcement traced the boy and
informed D. P later on came to know and claimed it. I servant entitled to reward?
(a) Servant is entitled to claim.
(b) Servant is not entitled to claim because he was ignorant of the offer of reward so there was no
agreement because there was no acceptance.
(c) The contract is voidable at the option of the servant.

4. Facts: Harvey sent a telegram to Mike stating ‘Will you sell me your private plane for Rs 2
crore’.
Harvey sent another telegram to Mike stating ‘We agree to buy your private plane for Rs 2 crore as asked
by you. Please leave it at the airport tomorrow, so that I can collect it. Is there are valid contract between
Harvey and Mike.
(a) Yes there is a valid contract as Harvey made an offer multiple times and Mike did not
respond which amounts to acceptance.
(b) It is voidable at the option of Mike as he was forced into selling his plane.
(c) There is no valid contract as there is no acceptance of the offer.
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(d) None of the above.

5. D offered to purchase a lodge owned by P for rs 6,000. He wrote to P’s agent asking whether his
offer was accepted. He also added that he is ready to accept any higher price, if found reasonable. The
agent replied,’ would not accept less than 10,00’ D accepted this and brought a suit for specific
performance. Is P liable to follow thorugh with the contract?
(a) P is liable to perform the contract entered into by D and P’s agent.
(b) P is not liable because there is only offer or counter offer but no valid acceptance. Hence no
valid contract, hence P is not liable.
(c) The contract is voidable at the option of P.

6. Facts: F offered to buy his nephew’s horse for Rs 3000, adding, If I hear no more from you, I shall
consider the horse as mine for Rs 3000. The nephew, did not reply, but told his auctioneer not to sell the
horse, as it was already sold to his uncle. But auctioneer sold it by mistake to third party. F sued for
conversion of property.
(a) Nephew is liable as his action of telling his auctioneer not to sell, amounts to a valid
acceptance and contract.
(b) Nephew is not liable as mere mental acceptance and uncommunicated acceptance does not result
in a valid contract.
(c) It is a valid contract as the offer mentioned that silence will amount to acceptance.
Therefore,nephew’s silence is a valid acceptance.
(d) This contract is voidable at the option of F and it is on the court to determine the liability of
parties.

7. Principle: Auction/Sale of goods is an invitation to offer; not an offer.

Facts: N advertised in the newspaper to effect sale of his goods on a particular day at a particular place. H
traveled a long distance to bid for the things. On arrival, he found that the sale was cancelled. H sued N for
the breach of contract. Is N liable?
(a) N is not liable because advertisement was merely expression of an intention and not an offer
which could be accepted by traveling to the place of intended sale.
(b) N is liable for all the expenses incurred by H for travelling such a long distance.
(c) N is not liable, because his proposal wasn’t accepted by H.
(d) The contract is voidable at the option of N, hence he is not liable.

8. Principle: A counter offer doesn’t give rise to a binding contract.

Facts: A offered to sell a farm for Rs 10,000. X said he would but it for Rs 9,500/ A refused and then X
said he would buy it at Rs 10,000. A declined to sell as per his original offer. X sued A to adhere to the
contract. Is there a valid contract between A and X?

(a) There is no valid contract as X’s statement to buy it for Rs 9,500 amounts to a refusal and is a
counter offer which was not accepted.
(b) There is a valid contract and A is liable for specific performance since X eventually agreed to
A’s offer of 10,000.
(c) This is a valid contract as X is a reasonable person who has a right to negotiation.
(d) There is no valid contract as X lost his chance to buy.

9. Principle: A counter offer doesn’t give rise to a binding contract. For a valid contract a proposal must
CLATapult TM Worksheet no. CTPT/LeR/03

be followed by an acceptance.
Facts: D wrote to P on August 30, 2018 offering to sell 800 shakalaka boom boom pencils for 5000
rupees. On the same day P wrote to D offering to buy 800 shaka laka boom boom pencils for Rs 5000.
The two letters crossed in post and neither of them knew anything about the offer to the other. P contented
that there was a valid contract.
What is the nature of contract and liabilities on the two parties?
(a) There was no valid contract because an agreement results into a contract when there is an offer
from one side and its acceptance from the other. So there is no question of liabilities.
(b) It is a voidable contract at the option of D because D has offered to intitally sell the product.
(c) It is a valid contract since both had the intention to do the same thing. So they wanted to
create legally binding obligations on each other.
(d) There is no valid contract as Shakala boom boom is a poor brand of pencils.

(For Q10-11)
Principle (1): Communication of an acceptance is a must for a valid contract.
Principle (2): Revocation of proposal can be made anytime before the acceptance is complete against the
proposer.
10. Facts: The manager of a railway company received an offer by a letter relating to the supply of coal.
He wrote on his letter ACCEPTED addressed it to the Coal buyer and forgot all about it. Whether there is
a contract?
(a) Once it has been written ACCEPTED on the letter, it means there is a valid contract and the coal
company is liable to sue.
(b) There is no valid contract as there is no communication of acceptance.
(c) It is a voidable contract at the option of railway company.
(d) None of the above.

11. Facts: The manager of a railway company received an offer by a letter relating to the supply of coal.
He wrote on his letter ACCEPTED and addressed it to the coal buyer forgot all about it. The coal buyer
meanwhile made a revocation of his proposal through telegram. Whether revocation is valid?

(a) Since the acceptance is not put in course of transmission, the revocation can be validly made
by the Coal buyer.
(b) Revocation is not valid as this will cause hardship for the railway company which has set aside
the coal for them.
(c) The Revocatio is valid as it is not a completed proposal anyway.
(d) None of the above.

12. Principle -1 : Acceptance of an offer is complete when the acceptance is put into the course of
transmission so as to be out of the power of the acceptor.
Principle - 2 Acceptance once completed makes the agreement binding on both parties.
Fact : A accepts to buy B's offer of his motor car for 4 lakhs. The acceptance was put into e-mail.
Unfortunately , when the e-mail was put, there is distortions as a result of which B is not in a position to
really read what A has written.
a. Both the parties are bound to perform their part of the agreement.
b. Nobody is bound to perform the agreement.
c. A is bound to perform the agreement but not B
d. B is bound to perform the agreement but not A