Ch # 2.

Offer, acceptance and revocation Page 196

1. The Law of Contract is

(a) Whole law of obligations
(b) Law of only contractual obligations
(c) Law of judgements of the courts
(d) Law of quasi-contracts

2. The Law of Contract is

(a) Law of agreements
(b) Law of agreements which creates legal obligation
(c) Law of all agreements
(d) Law of personal and social agreement

3. Legal relationship, in relation to law of contact, means

(a) Lawful relationship
(b) Relationship permissible by law
(c) Legal rights and obligations
(d) All rights and obligations

4. Which of the following statement is true

(a) Agreements between husband and wife for NiKKAH constitute a contract
(b) Agreement between friends cannot be enforced
(c) Agreements between friends creating legal relationship can be enforced
(d) All of the above

5. An agreement to be enforced in the court must have

(a) Legal enforceability
(b) Mutual consent between the parties
(c) Lawful consideration
(d) All of the above

6. Lawful offer is
(a) Promise
(b) Legal relation
(c) Proposal
(d) Presentation

7. Which of the following result/results in an offer?

(a) A declaration of intention
(b) An invitation to offer
(c) An advertisement offering reward to anyone who finds the lost dog of the advertiser
(d) An offer made in a joke

8. Which of the following is not invitation of offer

(a) Advertisement
(b) Price list
(c) Proposal for doing or not doing something
(d) Display of the goods
Ch # 2. Offer, acceptance and revocation Page 197

9. A makes an offer to B on 10th by a letter which reaches B on 12th. B posts letter of acceptance on
14th which reaches A on 16th. The communication of acceptance is complete as against A on
(a) 12th
(b) 14th
(c) 16th
(d) 10th

10. Offer is simply a

(a) Mere expression of willingness to do or not to do some thing
(b) Intention to create legal relationship
(c) Intention to get assent of other party for offered act or abstinence
(d) All of the above

11. An offer cannot be made

(a) By the words of mouth
(b) By the conduct of party
(c) By the circumstances
(d) To the offeror himself

12. An offer is said to be revoked

(a) By non-fulfilment of condition precedent to acceptance
(b) Acceptance is not in prescribed mode, but offeror does not reject it
(c) Acceptance is not given within reasonable period of time, but offeror does not object
(d) Misunderstanding has arisen between offeror and offeree

13. Acceptance must be given in:

(a) Usual manner
(b) Prescribed manner
(c) Any manner suitable to the offeree
(d) More effective manner

14. Which of the following statements is true

(a) A proposal may be revoked at any time before the communication of its acceptance is complete
as against the offeree.
(b) Acceptance may be revoked at any time, before the communication of acceptance is complete
as against the acceptor
(c) An offer initially rejected may subsequently be accepted
(d) Letter of offer may be sent after letter of acceptance

15. A person cannot make an offer

(a) To a person of sound mind
(b) To his friend
(c) To himself
(d) To the citizen of a foreign country

16. An offer gets legal consequences

(a) As soon as it is made
(b) As soon as it is communicated
(c) As soon as it is revoked
(d) As soon as it is accepted
Ch # 2. Offer, acceptance and revocation Page 198

17. Implied acceptance is inferred

(a) From the silence of offeree
(b) From the conduct of the offeree
(c) From the written statement of the offeree
(d) From the oral statement of the offeree

18. Abdullah offered by letter to sell Karim his motorbike for Rs. 5,000. Karim wrote back saying he
accepted the offer and would pay in two instalments at the end of the two following months. Is there
a contract?
(a) No, because Karim is trying to amend the contractual terms. Abdullah can be assumed to
revoke the offer
(b) Yes, there has been as offer and acceptance and a binding contract applies
(c) No, Karim’s response constitutes a counteroffer and is effectively a rejection of Abdullah’s offer
(d) Yes, Karim’s response is merely a clarification of contractual terms.

19. Every promise and every set of promise forming the consideration for each other is a/an
(a) Contract
(b) Agreement
(c) Offer
(d) Acceptance

20. A promise to deliver his watch to B and, in return, B promises to pay a sum of Rs 2,000. This is a/an
(a) Agreement
(b) Contract
(c) Acceptance
(d) Offer

21. Agreements that do not give rise to contractual obligations are not contracts.
(a) True
(b) Partly True
(c) False
(d) None of these

22. Where a meaningless term is used in an agreement, the effect is?

(a) The entire contract will be held unenforceable
(b) It has no practical effect on the contract – the whole contract is enforceable
(c) That this term, rather than the entire contract, maybe held unenforceable
(d) Void agreement

23. A invites B for coffee in coffee-day restaurant and B accepts the invitation. On the appointed date,
B goes there but A is not found. In this case
(a) B has no remedy against A
(b) B has to wait for another invitation from A
(c) B has the right to sue A for not honoring his words
(d) A has to invite B again, to perform the promise

24. A contract creates

(a) Rights and obligations of the parties to it
(b) Obligations of the parties to it
(c) Mutual understanding between the parties to it
(d) Mutual lawful rights and obligations of the parties to it
Ch # 2. Offer, acceptance and revocation Page 199

25. __________ is made by words spoken.

(a) Express Contract
(b) Implied Contract
(c) Tacit Contract
(d) Unlawful Contract

26. _________ is made by words written.

(a) Express Contract
(b) Implied Contract
(c) Witten Contract
(d) Unlawful Contract

27. An agreement is:

(a) Enforceable by law if it meets the requirements of the law of the land
(b) Enforceable by law if any one party want it
(c) Enforceable against the law
(d) Enforceable by law if it is made by competent parties

28. In social agreements, the usual presumption is

(a) That parties do not intend to create social relations
(b) That parties intend to perform them
(c) That parties do not intend to make legal and social relations
(d) That the parties do not intend to create legal relations between them

29. An implied contract is the one which comes into existence on account of
(a) Conduct of the parties
(b) Non-availability of a paper for writing
(c) Inability of the parties to write or speak
(d) Directions given by a court

30. When is the communication of a proposal complete:

(a) When it comes to the knowledge of the person to whom it is made
(b) Only when the proposal, acceptance or revocation of the proposal is recorded in writing
(c) When the other party gives his assent or dissent to the proposal
(d) Only when a clear verbal communication of such proposal is made

31. When can a proposal be revoked:

(a) Once a proposal is made, it cannot be revoked
(b) Any time before or after the communication of acceptance is complete
(c) Any time before the communication of its acceptance is complete as against the proposer, but
not afterwards
(d) Any time before the proposal comes to the knowledge of the other party, but not afterwards

32. A proposal cannot be revoked:

(a) By the communication of notice of revocation by the proposer to the other party
(b) By the failure of the acceptor to fulfil a condition precedent to acceptance
(c) By the lapse of the time prescribed in such proposal for its acceptance
(d) By an act involving moral turpitude of the proposer, whether related to the proposal or
otherwise
Ch # 2. Offer, acceptance and revocation Page 200

33. Which of the following is not a necessary feature to convert a proposal into a promise?
(a) The acceptance must be absolute
(b) The acceptance must be within the prescribed time limit
(c) The acceptance must be unqualified
(d) All of the options

34. Which of the following statements is incorrect?

(a) There is no difference in law between an offer and an invitation to offer
(b) An offer is a set of terms by which the offeror is willing to be bound
(c) In bilateral contracts the parties exchange promises
(d) Acceptance in contract may take effect through conduct and need to be communicated through
words.

35. Which of the following is NOT effective communication of acceptance of an offer?

(a) Deviation (which is a quicker form) from the method stipulated in the offer
(b) Silence
(c) Conduct of the contract
(d) Outward evidence of the offeree’s intention to accept

36. An implied offer means an offer made

(a) By spoken words
(b) By SMS
(c) By conduct
(d) By both spoken words and body language

37. An offer may be made

(a) By words
(b) By conduct
(c) Either by words or by conduct
(d) Neither of these

38. B makes to memorize a proposal to his parrot and sends him to A to recite the proposal. The parrot
does so. The proposal is
(a) Valid
(b) Void
(c) Unlawful
(d) Illegal

39. If A say to B “I offer to sell my car to you for Rs. 2 Lakhs and B accepts the offer by saying clearly “I
accept your offer”. It is an
(a) Implied offer
(b) Express offer
(c) General offer
(d) Counter offer

40. An offer may be

(a) conditional
(b) Unconditional
(c) Conditional and unconditional at the same time
(d) Either conditional or unconditional
Ch # 2. Offer, acceptance and revocation Page 201

41. A offers B to sell his house for Rs. 1.5 million and directs him to send his acceptance only by e-mail
B sends A letter of acceptance by post. This is
(a) valid acceptance
(b) invalid acceptance
(c) valid acceptance if A does not reject
(d) no acceptance at all

42. Communication of a proposal is complete when it comes to the knowledge of

(a) The person to whom it is made
(b) The proposer
(c) Either of the proposer or offeree
(d) The central government

43. A proposes by letter, to sell his horse to B at Rs 10,000. Communication of the proposal is complete
when
(a) A post the letter
(b) B receives the letter
(c) B acknowledges to a that he has received the letter
(d) B replies the letter

44. Offer should not contain a term, the non-compliance of which would amount to acceptance.
(a) True
(b) Party True
(c) False
(d) None of the above

45. Which of the following conditions is not necessary for a valid offer?
(a) Intention to create legal relation
(b) Unconditional terms
(c) Certainty of terms
(d) Communication to the person to whom it is made

46. Which of the following results in an offer?

(a) A declaration of intention
(b) An invitation to offer
(c) An advertisement offering reward to anyone who finds the lost dog of the advertiser
(d) An offer made in a joke

47. Which of the following is an invitation to offer?

(a) A tender to supply goods at a certain time
(b) A request for a loan
(c) Bids in an auction sale
(d) A catalogue of goods for sale

48. When a person invites the other party to make an offer, he is said to make a/an
(a) Proposal
(b) Offer
(c) Invitation to offer
(d) Acceptance

49. Price Lists and Catalogues, Advertisements in newspapers, and enquiries from customers are
(a) Offers
(b) Invitations to offer
Ch # 2. Offer, acceptance and revocation Page 202

(c) Acceptances
(d) Cross-offers

50. Goods displayed in a shop with a price label is

(a) An offer
(b) An Invitation to offer
(c) A Counter offer
(d) A General offer

51. Application filled in by a prospective applicant to the Company is an example of

(a) Invitation to offer
(b) Offer
(c) Bid
(d) Acceptance

52. There is a Counter- offer when

(a) The offeree gives conditional acceptance
(b) The Offeree makes fresh offer of any other thing instead of accepting original offer.
(c) The offeree makes some price changes
(d) All of the above

53. An offer comes to an end after the expiry of

(a) Time stipulated for acceptance
(b) A reasonable time
(c) Either of these
(d) Neither of these

54. An offer lapses to an end when the Offeree

(a) Fails to fulfill a condition precedent to acceptance
(b) Does not accept the condition
(c) Either of these
(d) Neither of these

55. A offer to sell his car for Rs. 50,000 to B. B says he would buy it for Rs. 40,000. This is a case of
(a) Counter offers
(b) Implied offers
(c) Direct offers
(d) Express offers

56. A proposal is revoked by the death of the Proposer, if the fact of his death comes to the Knowledge
of the Acceptor
(a) Before acceptance
(b) After acceptance
(c) During acceptance
(d) Any of the above

57. A sends a letter to B Proposing to sell his Land. B Sends his acceptance by post. A can revoke the
offer at any time before B posts his letter of acceptance, but not afterwards.
(a) True
(b) Partly True
(c) False
(d) None of the above
Ch # 2. Offer, acceptance and revocation Page 203

58. In which of the following circumstances, does the offer come to an end?
(a) Lapse of time
(b) Counter offer
(c) Death of offeror or offeree before acceptance
(d) All of these

59. An applied for 1000 shares in a Company on 1st May. The Company accepted and allotted shares
on 1st November of that year A refused the Shares. Is A’s action valid?
(a) Yes, Shares Cannot be allotted on the faith of letter Written by A
(b) Yes, Shares Cannot be allotted in the second half of a calendar year
(c) Yes, offer lapsed as it was not accepted within a reasonable time
(d) No, A has to accept and pay for the shares of revocation of offer have been

60. An offer can be accepted by

(a) Notice of acceptance
(b) Performance of condition specified in the offer
(c) Acceptance of consideration for a reciprocal promise
(d) All of these

61. A offered a reward to anyone who could fetch his lost dog back. B brought the dog to A without
having heard of the offer which of the following statements is correct?
(a) B is entitled to the reward
(b) B was not entitled to the reward
(c) A has to find the dog himself
(d) No reword can be given for return of lost dog

62. An acceptance containing additions, limitations or other modifications shall amount to

(a) Rejection of the offer
(b) A counter offer
(c) A valid acceptance
(d) Both rejection and counter offer

63. An acceptance is valid

(a) When offeree adds his conditions with acceptance
(b) When offeree accepts all the conditions of the offer
(c) When it is not against the interest of any person
(d) When acceptance is caused by coercion

64. Acceptance to an offer may be given by

(a) Any person
(b) Competent person
(c) Authorized person
(d) Both competent and authorised persons

65. When is the communication of proposals, the acceptance of proposals and the revocation of
proposals deemed to be made:
(a) Only on clear verbal communication of such proposal, acceptance or revocation
(b) By words or any act or omission of the party by which he intends to communicate such
proposal, acceptance or revocation or has the effect of communicating it
(c) Only when the proposal, acceptance or revocation of the proposal is recorded in writing
(d) Only when the proposal, acceptance or revocation of the proposal is received and understood
by the other party receiving the information
Ch # 2. Offer, acceptance and revocation Page 204

66. A legal binding agreement between ___________ or more persons by which rights are acquired by one
or more to act or forbearance on the part of others.
(a) 2
(b) 5
(c) 4
(d) 6

67. Thus an agreement is promise or set of promises. A promise comes into existence when one party
makes a ___________ to other party and that other party signifies his assent thereto.
(a) Acceptance
(b) Proposal of offer
(c) Invitation to offer
(d) All of the above

68. A contract is an agreement enforceable by __________

(a) Third party
(b) Law
(c) One party
(d) Both parties

69. Law of contract covers __________

(a) Personal obligation
(b) Private obligation
(c) Contractual obligation
(d) Obligation imposed by third parties

70. A proposal, when accepted, becomes a ___________

(a) Offer
(b) Agreement
(c) Contract
(d) Promise

71. Contract = Agreement + ___________

(a) Enforceability by law
(b) Enforceability by parties
(c) Enforceability by Parliament
(d) All of above

72. Mr. A Invites Mr. B for his son’s wedding. Mr. B accepts the invitation. In this case, there is _______
(a) Legal agreement
(b) Social agreement
(c) Legal obligation on the part of Mr. B to attend wedding ceremony
(d) (a) & (c)

73. Mr. A invites Mr. B for coffee in a restaurant and Mr. B accepts the invitation. On the appointed date,
Mr. B goes there but Mr. A is not found. In this case:
(a) Mr. B has no remedy against Mr. A
(b) Mr. B has to wait for another invitation from Mr. A
(c) Mr. B can sue Mr. A for honoring his words
(d) Mr. A has to invite Mr. B again, to perform the promise.
Ch # 2. Offer, acceptance and revocation Page 205

74. Every contract is an agreement but every agreement is not a contract.

(a) True
(b) False
(c) Partly true
(d) None of above

75. A husband promised to pay his wife a household allowance of Rs2,500 every month. Later parties
separated and the husband failed to pay the amount. This is ___________
(a) proposal
(b) Not a contract
(c) Agreement enforceable by law
(d) None of above

76. The term “Proposal” used in Contract Act, 1872 is synonymous with term ___________
(a) Contract
(b) Offer
(c) Agreement
(d) None of above

77. Mr. A says to Mr. B, “will you purchase my car for Rs.500,000?” In this case a Mr. A is making
___________
(a) Offer
(b) Acceptance
(c) Asking question to B
(d) None of above

78. An offer inferred from the circumstances or conduct of the parties is known as ___________
(a) Express offer
(b) Implied offer
(c) (a) or (b)
(d) None of above

79. Which of the following is implied offer?

(a) A says to B will you purchase my car for Rs.20,000
(b) A advertises in newspaper offering Rs.500 to anyone who returns his lost dog.
(c) Transport Company runs a bus on particular route.
(d) Husband promises to wife to pay Rs.500 per month

80. An offer may be distinguished from ___________

(a) An invitation to make an offer
(b) To do business
(c) Both (a) & (b)
(d) None of above

81. Which of the following is / are example of invitation to make an offer?

(a) Distribution of price list by a seller
(b) Menu card of a restaurant showing the discounts of food items
(c) Employment advertisement
(d) All of above
Ch # 2. Offer, acceptance and revocation Page 206

82. Which of the following is / are example of invitation to make an offer?

(a) Railway time table showing the timing of trains only.
(b) Issue of prospectus by a public company inviting the public to subscribe for share or
debenture
(c) Distribution of price list by a seller
(d) All of above

83. Consider following agreements

i. A agrees to sell to B “ a 100 tons of oil”
ii. A who is dealer in coconut oil only agrees to sell to B”100 tons.
iii. A agrees to sell to B “100 tons of oil rice at a price to be fixed by C”
iv. A agrees to sell to B, “My white horse for Rs.15,000 or Rs.10, 000
Which of the above agreements are valid?
(a) 1 & 2
(b) 2 & 3
(c) 3 & 4
(d) 4 & 1

84. An offer is not different from

(a) Advertisement
(b) Price list
(c) Proposal for doing or not doing something
(d) Display of the goods

85. Paramount Furniture wrote a letter to Baber Naeem stating, “We have received exquisite bedside
tables which we will sell to you at a very favourable price.”
Which of the following statements with respect to the above is correct?
(a) The letter is an offer to sell
(b) The letter lacks the essential element of an offer
(c) The letter contains a valid offer which will terminate within a reasonable time
(d) An offer made by a letter must be accepted by a letter

86. Amir had offered both Behram and Ahmed to sell his piano at a discounted price of Rs. 25,000.
Behram responded immediately and refused to accept the offer. Amir who was in urgent need of
money, lowered the offered price to Rs. 15,000 which was finally accepted by Behram. Before
delivering the piano to Behram, Amir received acceptance from Ahmed on his initially offered price.
Therefore, Amir has refused to deliver the piano to Behram.
Can Behram claim damages upon Amir’s refusal?
(a) No, because Amir refused the delivery to Behram due to inadequate consideration
(b) No, because Amir had agreed to deliver piano to Behram under undue influence
(c) Yes, because the contract was completed on acceptance of revised offer price
(d) Yes, because Behram responded first to the Amir’s offer

87. During the clearance sale at a famous clothing store, Sana selected a dress from the rack with a
price tag of Rs. 20,000 and brought it to the cash counter. Sana asked the cashier to pack the dress
and handed over her credit card for payment. Her act was to be considered as:
(a) invitation of an offer
(b) acceptance of an offer
(c) making an offer
(d) making an agreement
Ch # 2. Offer, acceptance and revocation Page 207

88. Zakir sent a letter to Rehman offering him to sell his sports bike for Rs. 50,000. It was mentioned in
the letter that if Rehman would not send a reply within one week, the offer shall be presumed to be
accepted. Rehman was thrilled to purchase the bike at this price and therefore did not reply within
the stipulated time.
Which of the following statements is correct?
(a) Rehman’s conduct constitutes implied acceptance of the offer
(b) Contract is valid because Rehman satisfied all the conditions of the offer
(c) Contract is not valid because the offer must be unconditional
(d) Rehman’s silence cannot be considered as acceptance

89. On 28 February 2022, Fahad offered to sell his vintage car to Rafay for Rs. 2 million. Subsequently,
Fahad died on 2 March 2022. Rafay was not aware of Fahad’s death and sent acceptance to Fahad
on 7 March 2022.
Which of the following statements is correct?
(a) The offer was revoked on 2 March 2022
(b) Fahad’s legal representatives are bound to sell the car to Rafay
(c) Contract is voidable at the option of Fahad’s legal representatives
(d) Fahad’s legal representatives are not bound to sell the car to Rafay

90. Aziza is a home-based baker famous for making themed cakes for special occasions. On 5 September
2022, a discount offer was made on Aziza’s social media account with the caption ‘Order today to
avail special price of Rs. 2,000 per pound for our special chocolate fudge cake. Delivery within 24
hours’. Sadia messaged Aziza on the same day for placing an order for a 2.5 pound cake. Aziza
replied that she will charge Rs. 3,000 per pound for the cake as she has received many orders and
will now charge premium price.
Can Sadia compel Aziza to sell the cake at Rs. 2,000 per pound?
(a) No, because Aziza’s offer was not specifically given to Sadia
(b) No, because Sadia’s offer has not been accepted by Aziza
(c) Yes, because Aziza’s discount offer regarding sale of cake is still valid
(d) Yes, because change in price was communicated after receiving of Sadia’s message

91. On 1 June 2022, Ali made an announcement promising to pay a reward of Rs. 90,000 to any person
who would find his lost dog. Sarim came to know about the announcement on 15 June 2022 and
decided to find the dog. On 30 June 2022, Sarim found the dog and handed it over to Ali on the same
day. Ali paid the reward of Rs. 90,000 to Sarim on 10 July 2022.
In the above scenario, the contract between Ali and Sarim was formed on:
(a) 1 June 2022
(b) 15 June 2022
(c) 30 June 2022
(d) 10 July 2022
Ch # 2. Offer, acceptance and revocation Page 208

Sr. No. Answer Sr. No. Answer Sr. No. Answer Sr. No. Answer
1 B 31 C 61 B 91 C
2 B 32 D 62 B
3 C 33 C (N-1) 63 B
4 D 34 A 64 D
5 D 35 B 65 B
6 C 36 C 66 A
7 C 37 C 67 B
8 C 38 C 68 B
9 B 39 B 69 C
10 D 40 D 70 D
11 D 41 C 71 A
12 A 42 A 72 B
13 B 43 B 73 A
14 B 44 A 74 A
15 C 45 B 75 B
16 D 46 C 76 B
17 B 47 D 77 C
18 C 48 C 78 B
19 B 49 B 79 A
20 A/B 50 A 80 A
21 A 51 A 81 D
22 C (N-1) 52 D 82 A
23 A 53 C 83 (N-1)
24 D 54 C 84 C
25 A 55 A 85 B
26 C 56 A 86 C
27 D 57 D 87 C
28 D 58 D 88 D
29 A 59 D 89 B
30 A 60 A/B 90 B

N-1: There is some missclarity in language of MCQ, so students are advised to ignore this one.