What would happen if ABC Trading Company, after receiving the proposal from Sharmaji Bhojanalay replied: “We accept your quote completely, however we need to inspect your premise before we sign the dotted line, kindly reply as to when would it be convenient for us to inspect your kitchen.” and Sharmaji Bhojanalay did not reply to the same for three weeks. In the fourth week, Sharmaji Bhojanalay sent them a communication, in reply to which ABC Trading company replied that they had gone ahead with another bid because of lack of communication with Sharma Bhojanalay. Sharmaji Bhojanalay takes ABC Trading to the court on the grounds that they had accepted the offer made by them, hence making a binding contract.a)The court would ask ABC to honor the contract with Sharmaji Bhojanalay.b)The court would not consider the contract as binding, despite the words ‘we accept your quote completely…’c)No, the acceptance was not absolute and unqualified and therefore, no contract has been formed.d)Both (b) and (c)Correct answer is option 'D'. Can you explain this answer?

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CLAT Exam > CLAT Questions > What would happen if ABC Trading Company, af...

a)
The court would ask ABC to honor the contract with Sharmaji Bhojanalay.
b)
The court would not consider the contract as binding, despite the words ‘we accept your quote completely…’
c)
No, the acceptance was not absolute and unqualified and therefore, no contract has been formed.
d)
Both (b) and (c)

Correct answer is option 'D'. Can you explain this answer?

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What would happen if ABC Trading Company, after receiving the proposa...

Despite using the words ‘we accept your quote completely…’ the acceptance of ABC Trading Company was conditional and hence there was no contract for the court to enforce. Hence (d).

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Principle: The acceptance of a proposal must be absolute and unqualified, leaving no ground for doubt or uncertainty. lf the acceptance is conditional, no valid contract is formed, and the offer can be withdrawn at any moment till the absolute acceptance has taken place within reasonable time of such offer.Facts: ABC Trading Company advertised in a local newspaper, inviting proposals for supply of lunch to its workers. Sharmaji Bhojanalay submitted their proposal including a quotation of Rs. 9500 daily. ABC Trading Company replied: “Okay, we accept your proposal. Would you also be willing to supply snacks in the afternoon? Quote a price if you are.” There was no reply to this message.Has a valid contract been formed?

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Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.Legal Principles:1. When one person signify to another person his willingness to do or not do something (abstain) with a view to obtain the assent of such person to such an act or abstinence, he is said to make a proposal or an offer.2. The communication of the offer is complete when it comes to the knowledge of the person to whom it is made.3. Communication of acceptance is complete when it is put in the course of transmission to him as to be out of the power of the acceptor to withdraw the same and when it comes to the knowledge of the proposer.4. In case of the proposer, the communication of the acceptance is complete when he puts such acceptance in the course of transmission.5. The communication in case of the acceptor is complete when the proposer acquires knowledge of such acceptance.6. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.Facts: G offered to sell the L fleeces of wool for a certain price. G requested that the response be made by post. This letter was misdirected by G so that it was not received for 3 days after it was sent. L decided to accept the offer and responded on the same day. This was posted on the 5th July but not received until the 9th July. However, G decided on the 8th July that as he had not received a response so decided to sell the wool to someone else. But L argued that a contract had been created as he had accepted their offer.Decide.

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Direction: Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts given below and select the most appropriate answer.Legal Principles: When one person signify to another person his willingness to do or not do something (abstain) with a view to obtain the assent of such person to such an act or abstinence, he is said to make a proposal or an offer. The communication of the offer is complete when it comes to the knowledge of the person to whom it is made. Communication of acceptance is complete when it is put in the course of transmission to him as to be out of the power of the acceptor to withdraw the same and when it comes to the knowledge of the proposer. In case of the proposer, the communication of the acceptance is complete when he puts such acceptance in the course of transmission. The communication in case of the acceptor is complete when the proposer acquires knowledge of such acceptance. An offer may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. Facts: G offered to sell the L fleeces of wool for a certain price. G requested that the response be made by post. This letter was misdirected by G so that it was not received for 3 days after it was sent. L decided to accept the offer and responded on the same day. This was posted on the 5th July but not received until the 9th July. However, G decided on the 8th July that as he had not received a response so decided to sell the wool to someone else. But L argued that a contract had been created as he had accepted their offer. Decide.

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Section 4 of the Indian Contract Act, 1872 reads as follows:Communication when complete - The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.The communication of an acceptance is complete, - as against the proposer, when it is put in a course of transmission to him so as to be out of the power of the acceptor; as against the acceptor, when it comes to the knowledge of the proposer.Thus, the provision makes no difference in the position of the offeror. The offeror becomes bound when a properly addressed and adequately stamped letter of acceptance is posted. The acceptor does not become bound by merely posting his acceptance. He becomes bound only when his acceptance comes to the knowledge of the proposer. The contract is concluded at the place from where the proposal is accepted and communication of acceptance is dispatched, i.e., the address at which the proposal was sent. The court at that place would have jurisdiction to entertain a cause of action under the contract. This rule, that the communication of an acceptance is complete as against the proposer when the letter is posted, is probably intended to apply only when the parties are at a distance and they communicate by post. “Where, however, the parties are in each other’s presence or, though separated in space”, they are in direct communication, as, for example, by telephone, no contract will arise until the offeror receives the notification of acceptance.Q.‘S’ wanted to purchase shares of a company and communicated his offer to buy shares on March 1, 2021. A letter of allotment of shares addressed to ‘S’, which is an acceptance of the offer to purchase shares, was posted by the company on March 10, 2021, but the letter never reached ‘S’ and was lost in transit. In the given situation, which of the following statements is true?

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Section 4 of the Indian Contract Act, 1872 reads as follows:Communication when complete - The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.The communication of an acceptance is complete, - as against the proposer, when it is put in a course of transmission to him so as to be out of the power of the acceptor; as against the acceptor, when it comes to the knowledge of the proposer.Thus, the provision makes no difference in the position of the offeror. The offeror becomes bound when a properly addressed and adequately stamped letter of acceptance is posted. The acceptor does not become bound by merely posting his acceptance. He becomes bound only when his acceptance comes to the knowledge of the proposer. The contract is concluded at the place from where the proposal is accepted and communication of acceptance is dispatched, i.e., the address at which the proposal was sent. The court at that place would have jurisdiction to entertain a cause of action under the contract. This rule, that the communication of an acceptance is complete as against the proposer when the letter is posted, is probably intended to apply only when the parties are at a distance and they communicate by post. “Where, however, the parties are in each other’s presence or, though separated in space”, they are in direct communication, as, for example, by telephone, no contract will arise until the offeror receives the notification of acceptance.Q.‘A’, who is in Mumbai, makes an offer for supply of goods to ‘B’, who is in Delhi, via a mobile phone call. During the same call, A’s offer is absolutely and unconditionally accepted by ‘B’. According to the terms agreed between ‘A’ and ‘B’, goods are to be supplied at Pune and payment is to be made electronically. In the given situation, where is the contract concluded?

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What would happen if ABC Trading Company, after receiving the proposal from Sharmaji Bhojanalay replied: “We accept your quote completely, however we need to inspect your premise before we sign the dotted line, kindly reply as to when would it be convenient for us to inspect your kitchen.” and Sharmaji Bhojanalay did not reply to the same for three weeks. In the fourth week, Sharmaji Bhojanalay sent them a communication, in reply to which ABC Trading company replied that they had gone ahead with another bid because of lack of communication with Sharma Bhojanalay. Sharmaji Bhojanalay takes ABC Trading to the court on the grounds that they had accepted the offer made by them, hence making a binding contract.a)The court would ask ABC to honor the contract with Sharmaji Bhojanalay.b)The court would not consider the contract as binding, despite the words ‘we accept your quote completely…’c)No, the acceptance was not absolute and unqualified and therefore, no contract has been formed.d)Both (b) and (c)Correct answer is option 'D'. Can you explain this answer?

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What would happen if ABC Trading Company, after receiving the proposal from Sharmaji Bhojanalay replied: “We accept your quote completely, however we need to inspect your premise before we sign the dotted line, kindly reply as to when would it be convenient for us to inspect your kitchen.” and Sharmaji Bhojanalay did not reply to the same for three weeks. In the fourth week, Sharmaji Bhojanalay sent them a communication, in reply to which ABC Trading company replied that they had gone ahead with another bid because of lack of communication with Sharma Bhojanalay. Sharmaji Bhojanalay takes ABC Trading to the court on the grounds that they had accepted the offer made by them, hence making a binding contract.a)The court would ask ABC to honor the contract with Sharmaji Bhojanalay.b)The court would not consider the contract as binding, despite the words ‘we accept your quote completely…’c)No, the acceptance was not absolute and unqualified and therefore, no contract has been formed.d)Both (b) and (c)Correct answer is option 'D'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about What would happen if ABC Trading Company, after receiving the proposal from Sharmaji Bhojanalay replied: “We accept your quote completely, however we need to inspect your premise before we sign the dotted line, kindly reply as to when would it be convenient for us to inspect your kitchen.” and Sharmaji Bhojanalay did not reply to the same for three weeks. In the fourth week, Sharmaji Bhojanalay sent them a communication, in reply to which ABC Trading company replied that they had gone ahead with another bid because of lack of communication with Sharma Bhojanalay. Sharmaji Bhojanalay takes ABC Trading to the court on the grounds that they had accepted the offer made by them, hence making a binding contract.a)The court would ask ABC to honor the contract with Sharmaji Bhojanalay.b)The court would not consider the contract as binding, despite the words ‘we accept your quote completely…’c)No, the acceptance was not absolute and unqualified and therefore, no contract has been formed.d)Both (b) and (c)Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What would happen if ABC Trading Company, after receiving the proposal from Sharmaji Bhojanalay replied: “We accept your quote completely, however we need to inspect your premise before we sign the dotted line, kindly reply as to when would it be convenient for us to inspect your kitchen.” and Sharmaji Bhojanalay did not reply to the same for three weeks. In the fourth week, Sharmaji Bhojanalay sent them a communication, in reply to which ABC Trading company replied that they had gone ahead with another bid because of lack of communication with Sharma Bhojanalay. Sharmaji Bhojanalay takes ABC Trading to the court on the grounds that they had accepted the offer made by them, hence making a binding contract.a)The court would ask ABC to honor the contract with Sharmaji Bhojanalay.b)The court would not consider the contract as binding, despite the words ‘we accept your quote completely…’c)No, the acceptance was not absolute and unqualified and therefore, no contract has been formed.d)Both (b) and (c)Correct answer is option 'D'. Can you explain this answer?.

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Sharmaji Bhojanalay takes ABC Trading to the court on the grounds that they had accepted the offer made by them, hence making a binding contract.a)The court would ask ABC to honor the contract with Sharmaji Bhojanalay.b)The court would not consider the contract as binding, despite the words ‘we accept your quote completely…’c)No, the acceptance was not absolute and unqualified and therefore, no contract has been formed.d)Both (b) and (c)Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of What would happen if ABC Trading Company, after receiving the proposal from Sharmaji Bhojanalay replied: “We accept your quote completely, however we need to inspect your premise before we sign the dotted line, kindly reply as to when would it be convenient for us to inspect your kitchen.” and Sharmaji Bhojanalay did not reply to the same for three weeks. In the fourth week, Sharmaji Bhojanalay sent them a communication, in reply to which ABC Trading company replied that they had gone ahead with another bid because of lack of communication with Sharma Bhojanalay. Sharmaji Bhojanalay takes ABC Trading to the court on the grounds that they had accepted the offer made by them, hence making a binding contract.a)The court would ask ABC to honor the contract with Sharmaji Bhojanalay.b)The court would not consider the contract as binding, despite the words ‘we accept your quote completely…’c)No, the acceptance was not absolute and unqualified and therefore, no contract has been formed.d)Both (b) and (c)Correct answer is option 'D'. 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Sharmaji Bhojanalay takes ABC Trading to the court on the grounds that they had accepted the offer made by them, hence making a binding contract.a)The court would ask ABC to honor the contract with Sharmaji Bhojanalay.b)The court would not consider the contract as binding, despite the words ‘we accept your quote completely…’c)No, the acceptance was not absolute and unqualified and therefore, no contract has been formed.d)Both (b) and (c)Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CLAT tests.

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