Communication and Revocation of Offer and Acceptance — MCQs

All questions with answers and explanations

Read the full set here, or use the practice card above to test yourself one question at a time.

1. Under Section 4, communication of an acceptance is complete as against the proposer when:

   • It is put into a course of transmission out of the acceptor's power (correct answer)
   • The proposer actually reads it
   • The acceptor signs it
   • Seven days have passed

   Explanation. Communication of acceptance is complete against the proposer the moment it is posted/transmitted — this is the postal rule.

2. In Felthouse v. Bindley, the court held that:

   • Silence can amount to acceptance if stated so by the offeror
   • Silence can never amount to acceptance (correct answer)
   • The auctioneer was personally liable
   • A general offer was validly accepted

   Explanation. The court held an offeror cannot impose an obligation on the offeree to reject an offer — silence, even when the offeror tries to redefine it as acceptance, is not valid acceptance.

3. In Lalman Shukla v. Gauri Dutt, the plaintiff's claim for the reward failed because:

   • He did not find the missing boy
   • He had no knowledge of the offer when he performed the act (correct answer)
   • The offer was never made
   • There was no consideration at all

   Explanation. Lalman had no knowledge of the reward offer at the time he searched for the boy, so there was no valid acceptance — knowledge of the offer is essential.

4. Under Section 6, which of the following does NOT revoke a proposal?

   • Notice of revocation by the proposer
   • Lapse of the prescribed time
   • Acceptance by the offeree (correct answer)
   • Death of the proposer known to the acceptor before acceptance

   Explanation. Acceptance completes the contract; it does not revoke the proposal. The other three are all valid modes of revocation under Section 6.

5. In Carlill v. Carbolic Smoke Ball Co., the court held that performing the conditions of a general offer:

   • Requires separate written acceptance
   • Is itself valid acceptance under Section 8 (correct answer)
   • Is not binding without a signed contract
   • Only binds the offeror, not the offeree

   Explanation. The court held that performing the stated conditions of a general offer is itself acceptance under Section 8 — no separate communication is needed.

6. Bhagwandas Kedia v. Girdharilal Parshottamdas held that for instantaneous communication like telephone, a contract is complete:

   • When the acceptance is spoken by the acceptor
   • Only where and when the acceptance is actually heard by the proposer (correct answer)
   • At the acceptor's location, always
   • Only if confirmed in writing afterward

   Explanation. The Supreme Court held the postal rule does not extend to instantaneous communication — the contract completes only where and when heard by the proposer.

7. For a valid acceptance under Section 7, the acceptance must be:

   • Conditional and open to negotiation
   • Absolute and unqualified (correct answer)
   • In writing only
   • Given within 24 hours

   Explanation. Section 7 requires acceptance to be absolute and unqualified, matching the offer exactly — a qualified 'yes, but' is a counter-offer, not acceptance.

8. An acceptance may be revoked by the acceptor at any time:

   • Before it is posted, but not after
   • Before it is complete as against the acceptor, i.e. before it reaches the proposer (correct answer)
   • Never, once posted
   • Only within 3 days of posting

   Explanation. Under Section 5, an acceptance may be revoked any time before it is complete as against the acceptor — which happens only when it reaches the proposer.

9. Section 10A of the Information Technology Act, 2000 says that a contract formed through electronic means:

   • Is not unenforceable only because it was formed electronically (correct answer)
   • Must also be signed on paper
   • Is valid only if stamped
   • Is void unless registered

   Explanation. Section 10A says that where a proposal, acceptance or revocation is in electronic form, the contract cannot be held unenforceable only because of that.

10. Under Section 13 of the Information Technology Act, 2000, the despatch of an electronic record occurs when it:

    • Is typed by the sender
    • Enters a computer resource outside the control of the sender (correct answer)
    • Is opened by the receiver
    • Is printed by the receiver

    Explanation. Section 13(1): despatch occurs when the record enters a computer resource outside the originator's control, unless the parties agree otherwise.

11. If the receiver has designated a computer resource and the record is sent to that resource, receipt occurs when:

    • The receiver reads it
    • The receiver replies
    • The record enters the designated computer resource (correct answer)
    • The sender receives a delivery report

    Explanation. Section 13(2)(a)(i): receipt occurs when the record enters the designated computer resource.

12. A e-mails an offer to B and then e-mails a revocation, which B has not yet read. B e-mails an acceptance. The revocation is complete against B:

    • Only when it comes to B's knowledge, so the acceptance is in time (correct answer)
    • When A sent it, so the acceptance fails
    • When B's server received it, regardless of reading
    • Never, because e-mail cannot revoke an offer

    Explanation. Under Section 4, a revocation is complete against the person to whom it is made when it comes to that person's knowledge. B's acceptance was therefore in time under Section 5.