Test: Nature Of Contracts- 2 - CA Foundation MCQ

Answer:

The correct answer is A: General offer.

Explanation:
When a person advertises to sell his old car in a newspaper, it is considered a general offer. Here's why:
1. General Offer: A general offer is an offer made to the public at large and is open for acceptance by anyone who meets the specified terms and conditions. In this case, the person is advertising the sale of his old car in a newspaper, which is accessible to the general public.
2. Newspaper Advertisement: Advertising in a newspaper is a common method used to reach a wide audience. By placing an advertisement, the person is making an offer to sell his car to anyone who is interested and meets the requirements mentioned in the advertisement.
3. Open to All: Since the advertisement is accessible to anyone who reads the newspaper, it is open to all potential buyers. The person is not targeting a specific individual or group but is inviting anyone interested in purchasing the car to contact him.
4. Terms and Conditions: The advertisement may include specific details about the car, such as its make, model, year, price, and contact information. Interested buyers can reach out to the person for further negotiations or to arrange a viewing and potential purchase.
In conclusion, when a person advertises to sell his old car in a newspaper, it is considered a general offer as it is open to acceptance by anyone who meets the specified terms and conditions.

The Indian Contract Law, 1872 was passed by the British Parliament. It is based on the principles of English Common Law.

Two offers which are similar in all respects made by two parties to each other, in ignorance of each other's offer are known as cross offers. Cross offer donot amount to acceptance of one's offer by the other. Hence, no contract is entered into cross offers.

B has made a counter offer to A:
- A enquires from B about purchasing their cow for $100.
- B responds by stating that they will purchase A's cow for $100, but only if A purchases their parrot for $120.
- This response from B indicates that they are proposing a different transaction than the one initially suggested by A.
- B is not directly accepting A's offer, but rather making a counter offer with their own terms and conditions.
- A now has the option to accept B's counter offer or negotiate further.
- This interaction demonstrates a negotiation process where both parties are proposing and discussing alternative terms for the transaction.

Indian Contract Act, 1872 - Jurisdiction
The Indian Contract Act, 1872 is applicable to the entire country of India, with the exception of Jammu and Kashmir.
Explanation:
The Indian Contract Act, 1872 is a legislation that governs contracts in India. It defines the rules and regulations relating to the formation, performance, and enforcement of contracts. The Act applies to various aspects of contracts, including their validity, rights, and obligations of the parties involved, and remedies in case of breach.
The Act extends its jurisdiction to the following:
A. Whole of India except Jammu and Kashmir:
- The Indian Contract Act, 1872 is applicable to the entire country of India, except for the region of Jammu and Kashmir.
- This means that the Act covers all states and union territories of India, except Jammu and Kashmir.
B. Whole of India:
- The Act has a wide jurisdiction and applies to the entire country of India, including all states and union territories.
- This implies that the Act governs contracts across the country, ensuring uniformity in contract laws throughout India.
C. North India only:
- This option is incorrect as the Act is not limited to North India only.
- The Indian Contract Act, 1872 has a nationwide jurisdiction, encompassing the entire country.
D. South India only:
- This option is incorrect as the Act is not limited to South India only.
- The Indian Contract Act, 1872 has a nationwide jurisdiction, encompassing the entire country.
In conclusion, the correct answer is Option B: Whole of India. The Indian Contract Act, 1872 applies to the entire country of India, excluding Jammu and Kashmir.

False Statement:
An offer to be valid must contain a term the non-compliance of which would amount to acceptance.
Explanation:
To determine the false statement among the given options, let's examine each statement individually:
A: Contain a term the non-compliance of which would amount to acceptance
This statement is false. An offer does not need to contain a term that would amount to acceptance. The acceptance of an offer typically occurs through a separate action or communication from the offeree.
B: Intend to create legal relations
This statement is true. For an offer to be valid, it must be intended to create legal relations. This means that the parties involved must have the intention to enter into a legally binding agreement.
C: Have certain and unambiguous terms
This statement is true. An offer must have certain and unambiguous terms in order to be valid. The terms of the offer should be clear and specific to avoid any confusion or misunderstanding.
D: Be communicated to the person to whom it is made
This statement is true. An offer must be communicated to the person to whom it is made in order to be valid. The offeror cannot simply make an offer without notifying the intended offeree.
Therefore, the false statement is A: An offer to be valid does not need to contain a term the non-compliance of which would amount to acceptance.

Answer:
The offer made by M/s. Law Book Company to sell a new law book exclusively to the members of Bar Council is called a specific offer. Here is a detailed explanation of why it is classified as a specific offer:
Definition of Specific Offer:
A specific offer is an offer made to a particular person or a group of people, specifying the terms and conditions of the offer and inviting them to enter into a contract.
Explanation:
The offer made by M/s. Law Book Company meets the criteria of a specific offer because:
1. Intention to create legal relations: The company has expressed its intention to sell the law book to the members of Bar Council, indicating its willingness to enter into a legal contract.
2. Clear and definite terms: The offer specifies the target audience (members of Bar Council) and the product being offered (new law book). The terms of the offer are clearly defined.
3. Invitation to enter into a contract: By making the offer, M/s. Law Book Company is inviting the members of Bar Council to accept the offer and enter into a contract for the purchase of the law book.
4. Limited audience: The offer is exclusively made to the members of Bar Council, indicating that it is not a general offer available to the public at large.
5. Legal implications: If a member of Bar Council accepts the offer and fulfills the specified conditions (such as payment), a legally binding contract is formed between the company and the member.
In conclusion, the offer made by M/s. Law Book Company to sell a new law book exclusively to the members of Bar Council is a specific offer as it meets the criteria of a specific offer, including clear terms, limited audience, and an invitation to enter into a contract.

 According to Section 10 of the Indian Contract Act, 1872, a contract to be valid must be made with an intention to create legal relationship. In the instant case, X invited Y for his son's wedding. Y accepted the invitation. Here, in this case, there is an agreement but not contract since one of the essential element of Section 10 viz. intention to create legal relationship is not present. Therefore there is no contract.

An offer must not be conditional.

Explanation:
The agreement between L and J to sell and buy the house is void due to the uncertainty of price. Here's why:
Uncertainty of price:
- In a contract, the price is an essential element that must be clearly defined and agreed upon by both parties.
- If there is uncertainty regarding the price, it means that the parties have not reached a definite agreement on this important aspect.
- This uncertainty can arise if the parties have not specified a specific price or if there is ambiguity in the price term.
- In the given scenario, the conversation between L and J does not mention any specific price for the house.
- L simply asks J if they will buy the house, and J replies with a positive response without discussing the price.
- Without a clear agreement on the price, the contract becomes void due to the uncertainty of price.
Therefore, the correct answer is B: Uncertainty of price.

To determine the nature of the contract between Sagrees and R, let's consider the details provided:
- Sagrees agrees to sell his DVD player to R.
- R promises to pay the amount one month later.
Based on these details, we can conclude that the contract between Sagrees and R is a bilateral contract. Here's why:
1. Bilateral contract:
- A bilateral contract is a type of contract in which both parties exchange promises and obligations.
- In this case, Sagrees promises to deliver the DVD player, and R promises to pay the amount.
2. Consideration:
- In a bilateral contract, consideration is required from both parties.
- Sagrees is providing the DVD player, and R is providing the payment, which fulfills the requirement of consideration.
3. Mutual obligations:
- Both parties have obligations that are enforceable by law.
- Sagrees is obligated to deliver the DVD player, and R is obligated to pay the amount.
4. Legal validity:
- The contract between Sagrees and R is not void or illegal.
- Void contracts lack the essential elements required for a valid contract, while illegal contracts involve illegal activities.
- In this case, there is no indication of any void or illegal aspects.
Therefore, based on the given details, the contract between Sagrees and R is a bilateral contract, as both parties have exchanged promises and obligations.

Offer in a self-service store:


In a self-service store, an offer refers to the act of making goods available for purchase by customers. Let's analyze the given options to determine which one constitutes an offer:
A: Picking up an article and approaching the cashier's desk for payment
- This action clearly demonstrates the intention to purchase the selected article, making it an offer.
B: Display of goods at the shop window
- The display of goods at the shop window is merely an invitation to treat or an invitation for customers to come into the store and make their selections. It does not constitute a formal offer.
C: There is no offer in such cases
- This option is incorrect. As mentioned earlier, an offer is made when a customer selects an article and approaches the cashier for payment.
D: When the customer asks for some goods
- While this action shows interest in purchasing goods, it does not constitute a formal offer. It is more of an inquiry or request.
Therefore, the correct answer is option A: Picking up an article and approaching the cashier's desk for payment. This action signifies an offer in a self-service store.

Section of the Indian Contract Act, 1872 defining Agreement:
The section of the Indian Contract Act, 1872 that defines Agreement is Section 2(e).
Explanation:
- The Indian Contract Act, 1872 is a legislation in India that governs contracts in the country.
- It defines various terms and concepts related to contracts, including the concept of Agreement.
- Section 2 of the Indian Contract Act, 1872 provides definitions for different terms used in the Act.
- Among these definitions, Section 2(e) specifically defines Agreement.
- According to Section 2(e), "Every promise and every set of promises, forming the consideration for each other, is an agreement."
- In simpler terms, an agreement is a promise or a set of promises made between two or more parties, where each promise is made as consideration for the other promises.
- This definition is crucial in understanding the formation and validity of contracts under the Indian Contract Act, 1872.
Therefore, the correct answer is A: 2 (e).

Explanation:
The correct answer is D: Unenforceable.
Here is a detailed explanation of each option and why the answer is D:
A: Valid
- A valid contract means that it meets all the essential elements required for a contract to be legally binding.
- However, in this case, the contract has some technical defects, which means it does not meet all the necessary requirements to be considered valid.
B: Illegal
- An illegal contract is one that involves illegal activities or violates existing laws or public policy.
- There is no information provided to suggest that the contract is illegal, so this option can be ruled out.
C: Voidable
- A voidable contract is one that can be legally avoided or cancelled by one party due to certain circumstances, such as fraud, undue influence, or lack of capacity.
- The information given does not indicate any circumstances that would make the contract voidable, so this option is not applicable.
D: Unenforceable
- An unenforceable contract is one that is considered valid and binding, but due to some technical defects or legal restrictions, cannot be enforced by a court of law.
- In this case, the contract is good in substance, meaning that it meets the essential elements of a contract, but it suffers from some technical defects.
- These technical defects prevent the contract from being enforceable, even though it is considered valid.
- Therefore, the answer is D: Unenforceable.
In summary, the contract in question is considered valid in substance but is unenforceable due to some technical defects.

The correct answer is option B: When it comes to the knowledge of the proposer.
Explanation:
The communication of acceptance is considered complete when it comes to the knowledge of the proposer. Let's understand this in detail:
- Option A: When it is put in course transmission to him so as to be out of reach of the acceptor
This option suggests that the acceptance is complete when it is transmitted to the acceptor and is out of their reach. However, this is not the correct answer as it does not consider the knowledge of the proposer.
- Option B: When it comes to the knowledge of the proposer
This option states that the acceptance is complete when it comes to the knowledge of the proposer. It means that the proposer should be aware of the acceptance for it to be considered complete. This is the correct answer as it involves the understanding and awareness of the proposer.
- Option C: When both the proposer and the acceptor declare the acceptance
This option suggests that the acceptance is complete only when both the proposer and the acceptor declare the acceptance. However, this is not the correct answer as it may not always be necessary for both parties to declare the acceptance for it to be considered complete.
- Option D: When the acceptor accepts his acceptance in a court of law
This option states that the acceptance is complete when the acceptor accepts his acceptance in a court of law. However, this is not the correct answer as the acceptance is considered complete when it comes to the knowledge of the proposer, not when it is accepted in a court of law.
Therefore, the correct answer is option B: When it comes to the knowledge of the proposer.

Explanation:
To determine which agreements are considered contracts, we need to understand the characteristics and requirements of a contract. A contract is a legally binding agreement between two or more parties that creates obligations and rights enforceable by law.
The correct answer is option C: "Are legally enforceable." Only agreements that meet the legal requirements and are enforceable by law are considered contracts. Here's why:
1. Contains a promise: While a promise is an essential element of a contract, not all agreements that contain promises are legally enforceable contracts. Therefore, option A is not the correct answer.
2. Are not legally enforceable: This option is incorrect because contracts are specifically agreements that are legally enforceable. If an agreement is not legally enforceable, it cannot be considered a contract.
3. Are legally enforceable: This is the correct answer. For an agreement to be considered a contract, it must meet certain legal requirements, such as offer and acceptance, consideration, capacity, and intention to create legal relations. Contracts are designed to establish legally enforceable obligations between the parties involved.
4. Are not void: While contracts should not be void for various reasons such as illegality, mistake, misrepresentation, or duress, the absence of voidness does not automatically make an agreement a contract. Therefore, option D is not the correct answer.
In summary, only those agreements that are legally enforceable are considered contracts. They must meet the legal requirements and create obligations that can be enforced by law.

Counter offer
- A counter offer is a response to an original offer made by the other party in a negotiation or business transaction.
- It involves rejecting the initial offer and proposing new terms or conditions.
- The counter offer acts as a rejection of the original offer and initiates a new round of negotiations.
- It indicates that the party making the counter offer is not willing to accept the terms proposed in the initial offer.
- The counter offer can include changes in price, quantity, delivery terms, or any other relevant terms of the agreement.
- It is a common strategy used in negotiations to reach a mutually acceptable agreement.
- Once a counter offer is made, the original offer is no longer valid, and the parties must negotiate the new terms.
- Counter offers can go back and forth until both parties reach an agreement or decide to end the negotiation.
- It is important to clearly communicate the terms of the counter offer to avoid misunderstandings or disputes.
- A counter offer can lead to a revised agreement that better meets the needs of both parties involved in the negotiation.

Explanation:

1. Introduction:

The question asks about the type of offer that is being made in an advertisement for the sale of an old flat.

2. Types of offers:

There are different types of offers that can be made in various contexts. In this case, the offer is for the sale of an old flat, so we need to determine the most appropriate type of offer.

3. Special Offer:

A special offer typically refers to a limited-time promotion or discount on a product or service. It is usually used to attract customers and increase sales. In this case, the advertisement does not mention any special discounts or promotions, so it is unlikely to be a special offer.

4. Continuing Offer:

A continuing offer is an offer that remains open for a specified period of time. It is often used in contracts or agreements where one party makes an offer that can be accepted by the other party within a certain timeframe. In this case, the advertisement does not mention any specific time period for accepting the offer, so it is unlikely to be a continuing offer.

5. Open Offer:

An open offer is an offer that is open to anyone who is willing and able to accept it. It is not limited to a specific group of people or a specific time period. In this case, the advertisement is published in a leading newspaper, indicating that it is open to the general public. Therefore, it is likely to be an open offer.

6. General Offer:

A general offer is similar to an open offer in that it is open to anyone who is willing and able to accept it. It is not limited to a specific group of people or a specific time period. In this case, the advertisement is published in a leading newspaper, indicating that it is open to the general public. Therefore, it is likely to be a general offer.

7. Conclusion:

Based on the information given in the question, the most appropriate type of offer for the sale of an old flat in an advertisement published in a leading newspaper is a general offer. Therefore, the correct answer is option D: General offer.

When the offeree offers to qualified acceptance of the offer subject to modification and variations in the terms of original offer, he is said to have made a counter offer. It amounts rejection of the original offer.

To determine whether Z is bound to make payment to H in this case, we need to analyze the situation based on the principles of contract law.
1. Offer and acceptance:
- In order for there to be a binding contract, there must be an offer made by one party and an acceptance by the other party.
- In this case, H, the coolie, voluntarily carried Z's luggage without being asked. This voluntary act can be seen as an offer by H to provide a service.
- Z, the passenger, did not explicitly accept this offer, but by not attempting to stop H from carrying the luggage, it can be implied that Z accepted the offer.
2. Consideration:
- Consideration is an essential element of a contract, which refers to something of value exchanged between the parties.
- In this case, H provided the service of carrying the luggage, and Z received the benefit of having their luggage transported.
- This can be seen as a mutual exchange of consideration, as H provided a service and Z received a benefit.
3. Intention to create legal relations:
- For a contract to be binding, there must be an intention to create legal relations.
- In this case, it can be assumed that both H and Z did not have the intention to create a legally binding contract.
- The act of carrying luggage without being asked is often considered a customary practice at railway stations, and passengers usually do not expect to make payment for this service.
Based on the above analysis, the correct answer is A: Z is bound to make payment to H. Z's acceptance of H's offer through their actions, the mutual exchange of consideration, and the lack of intention to create legal relations all indicate that Z should make payment to H for the service provided.

Explanation:
Introduction:
In this scenario, we have a situation where a contract is considered to be good in substance but suffers from some technical defects. We need to identify the correct type of contract that fits this description.
Options:
Let's analyze each option and determine which one fits the given situation:
A. Valid contract:
- A valid contract is one that meets all the essential elements required for a contract to be legally binding.
- It is not applicable in this scenario as we are looking for a contract with technical defects.
B. Voidable contract:
- A voidable contract is a valid contract that can be legally voided or canceled by one party due to certain circumstances.
- It does not necessarily have technical defects, so it is not the correct answer.
C. Illegal contract:
- An illegal contract is a contract that involves illegal activities or goes against public policy.
- It is not applicable in this scenario as we are looking for a contract with technical defects.
D. Unenforceable contract:
- An unenforceable contract is a valid contract that cannot be enforced by a court due to some technical defects or legal limitations.
- It fits the given situation as it is good in substance but suffers from technical defects like absence in writing, barred by limitation, etc.
Conclusion:
Based on the analysis, the correct answer is option D - Unenforceable contract. This type of contract is good in substance but cannot be enforced due to technical defects or legal limitations.

A void contract means:
A void contract refers to an agreement that is considered to be invalid and unenforceable by law. It lacks legal effect from the beginning, and if any party fails to fulfill their obligations, the other party cannot sue for non-performance or seek remedies. In other words, a void contract is like it never existed.

Key characteristics of a void contract:
- Lack of legal effect: A void contract is deemed to have no legal effect, making it unenforceable by law.
- Invalid from the beginning: Unlike a voidable contract, a void contract is considered invalid from the outset, as if it never existed.
- No obligations or rights: Parties involved in a void contract have no obligations or rights to enforce.
- Cannot be ratified: Since a void contract is fundamentally flawed, it cannot be validated or ratified by either party.
- Unenforceable by law: No legal action can be taken to enforce the terms of a void contract.

Examples of void contracts:
- Contracts involving illegal activities: Any agreement that involves illegal actions, such as drug trafficking or fraud, is void.
- Contracts with minors: In most jurisdictions, contracts entered into by minors are considered void. Minors lack the legal capacity to enter into binding agreements.
- Contracts against public policy: Agreements that go against public policy, such as contracts to commit a crime or agreements that promote discrimination, are void.
- Contracts with mentally incompetent individuals: Contracts with individuals who are mentally incompetent or incapable of understanding the terms are typically void.
In conclusion, a void contract is an agreement that lacks legal effect and is unenforceable from the beginning. It is important to distinguish void contracts from voidable contracts, as voidable contracts may be ratified or affirmed by the parties involved.

Answer:
M/s Law Book Company made an offer to sell a new law book released recently only to the members of Bar Council. This offer is called:
The offer made by M/s Law Book Company to sell a new law book only to the members of Bar Council can be classified as a specific offer. Let's understand why:
Definition: A specific offer is an offer that is made to a specific group of people or individuals, and it is not open to the general public. In this case, the offer is limited to the members of Bar Council.
Explanation:
- The offer made by M/s Law Book Company is not a general offer because it is not open to the general public. It is specifically targeted towards the members of Bar Council.
- An implied offer is an offer that is not explicitly stated but can be inferred from the circumstances. In this case, the offer is explicit and made directly to the members of Bar Council.
- An invitation to offer is not applicable in this scenario because M/s Law Book Company is not inviting the members of Bar Council to make an offer, but rather proposing their own offer to sell the law book.
- Therefore, the most appropriate classification for this offer is a specific offer, as it is directed towards a specific group of people.
In conclusion, the offer made by M/s Law Book Company to sell a new law book only to the members of Bar Council is called a specific offer.

Illegal Agreements and Collateral Transactions
Illegal agreements refer to contracts or agreements that are against the law or prohibited by law. In such cases, the collateral transactions associated with illegal agreements can be categorized as follows:
1. Valid
- Some collateral transactions may still be considered valid, even if the main agreement is illegal. This means that these transactions are legally binding and enforceable.
- These collateral transactions are separate and independent from the illegal agreement itself.
2. Void
- In many cases, collateral transactions associated with illegal agreements are considered void. This means that these transactions are treated as if they never existed.
- The purpose of declaring such transactions as void is to discourage parties from engaging in illegal activities and to protect the integrity of the legal system.
3. Voidable
- In certain situations, collateral transactions may be considered voidable when the illegal agreement is voidable.
- Voidable means that the transaction is initially considered valid, but one party has the option to cancel or void the transaction due to the illegal nature of the main agreement.
- The party who wishes to void the transaction must take appropriate legal action to do so.
4. None of the Above
- This option suggests that the collateral transactions associated with illegal agreements do not fall under any of the mentioned categories.
- However, it is important to note that this option is not the correct answer, as collateral transactions do have legal implications when they are connected to illegal agreements.
In conclusion, the correct answer is B: Void. Collateral transactions associated with illegal agreements are generally considered void, meaning they are treated as if they never existed. This is done to discourage illegal activities and uphold the integrity of the legal system.

Explanation:
To determine the correct answer, let's analyze the given options and the concept of legality regarding agreements.
Legal:
- A legal agreement is one that is formed in accordance with the law and is enforceable.
- However, an agreement to put a fire on a person's car goes against the law, so it cannot be considered legal.
Voidable:
- A voidable agreement is one that is valid and enforceable, but can be canceled or voided by one or both parties involved.
- While an agreement to put a fire on a person's car can potentially be canceled or voided, it is important to note that such an agreement is illegal and therefore cannot be considered voidable.
Valid:
- A valid agreement is one that meets all the necessary legal requirements, such as the presence of an offer, acceptance, consideration, legal capacity, and legality of the object.
- An agreement to put a fire on a person's car is illegal, as it involves criminal activity, and therefore cannot be considered valid.
Illegal:
- An illegal agreement is one that goes against the law and is therefore not enforceable.
- Given that an agreement to put a fire on a person's car involves criminal activity, it is illegal.
Conclusion:
Based on the analysis above, the correct answer is D: Illegal. An agreement to put a fire on a person's car is illegal and goes against the law.

Implied Contract:
An implied contract is a legally binding agreement that is created through the actions or conduct of the parties involved, rather than being explicitly stated in written or verbal terms. It is important to note that an implied contract can be just as enforceable as a written or express contract, as long as all the necessary elements are present.
Conditions for a Valid Implied Contract:
For an implied contract to be considered valid, the following conditions must be satisfied:
1. Intent: Both parties must have the intention to enter into a legal agreement. This can be inferred from their actions or conduct.
2. Offer and Acceptance: There must be a clear offer made by one party and an acceptance of that offer by the other party. This can be demonstrated through the parties' behavior or interactions.
3. Consideration: There must be valuable consideration exchanged between the parties. Consideration refers to something of value, such as goods, services, or money. It is the basis for the parties' mutual obligations.
4. Legal Capacity: Both parties must have the legal capacity to enter into a contract. This means they must be of sound mind and not under any legal disability that would prevent them from understanding the terms and consequences of the agreement.
5. Consent: The parties must freely and voluntarily consent to the terms of the contract. There should be no coercion, fraud, or undue influence involved.
6. Legal Purpose: The contract must have a legal purpose. It cannot involve any illegal activities or go against public policy.
Validity of an Implied Contract:
If all the above conditions are satisfied, an implied contract is considered valid. This means that the parties involved are legally bound to fulfill their obligations as outlined in the contract. If either party fails to fulfill their obligations, the other party may seek legal remedies to enforce the contract or seek compensation for any damages incurred.
It is important to understand that even though an implied contract may not be in writing or expressed in words, it can still be legally enforceable. The key factor is the intention and actions of the parties involved, which demonstrate their mutual agreement to be bound by the terms of the contract.

Explanation:
The given scenario involves two parties, A and B, negotiating the terms of a book supply agreement. A initially offers to supply books at a price of Rs. 100 each, but B accepts the offer with a condition of a 10% discount. This situation can be classified as a counter offer. Here's why:
- Counter offer: A counter offer occurs when the offeree (in this case, B) responds to an initial offer with modified terms. The modified terms essentially reject the original offer and propose a new offer. In this scenario, B's acceptance of the offer with a 10% discount is a counter offer because it introduces a new condition.
Other options explained:
- Cross offer: A cross offer occurs when two parties make identical offers to each other simultaneously. This is not the case in the given scenario since only one party (A) initially makes an offer.
- Specific offer: A specific offer refers to an offer that is made to a particular individual or group. In the given scenario, A's offer is specific to B, but B's acceptance with a discount is a counter offer.
- General offer: A general offer is an offer that is made to the public or a large group of people. This is not applicable in the given scenario as A's offer is specifically directed towards B.
Therefore, the correct answer is Counter offer (option A).

The enforceability at law of an agreement under the Indian Contract Act, 1872, requires the following:
1. Lawful Agreement:
- The agreement must be lawful, which means it must not be expressly declared void by the law or be of such a nature that it is considered illegal, immoral, or opposed to public policy.
- It must also fulfill the essential elements of a valid contract, such as offer and acceptance, intention to create legal relations, certainty of terms, etc.
2. Lawful Consideration:
- Consideration is an essential element of a contract. It refers to something of value given by one party to the other in exchange for the promise or performance of the other party.
- The consideration must be lawful, meaning it must not be illegal, immoral, or against public policy.
- It can be in the form of money, goods, services, or even forbearance to do something.
3. Free Consent:
- Consent refers to an agreement of parties on the same thing in the same sense.
- For a contract to be enforceable, the consent of the parties must be free, genuine, and not obtained through coercion, undue influence, fraud, misrepresentation, or mistake.
- Consent must be given voluntarily, without any external pressure or improper inducement.
Therefore, the enforceability at law of an agreement under the Indian Contract Act, 1872, requires all of the above conditions to be satisfied, making option D, "All of the above," the correct answer.

Implied agreements are created by situation.

Explanation:

• Implied agreements: These agreements are not explicitly stated or written down, but they are understood by the parties involved based on their actions, behavior, or circumstances.


• Created by situation: Implied agreements are created when the circumstances or situations surrounding the parties' interactions give rise to an understanding or expectation of certain terms or obligations.


• No formal documentation: Unlike written agreements, implied agreements do not require any formal documentation or written contract.


• Based on conduct: Implied agreements are often based on the conduct, actions, or course of dealing between the parties.


• Lack of explicit terms: Since implied agreements are not explicitly stated, it may be more challenging to determine the exact terms and obligations of the agreement.


• Enforceable: Implied agreements can still be legally binding and enforceable, even without a written contract, as long as the parties have demonstrated mutual consent and understanding of the agreement.

Therefore, in the given options, the correct answer is implied agreements.

The contract is Void

• If the entire specified goods perish before the contract of sale is entered into, the contract is considered void.


• This means that the contract is not legally enforceable and has no legal effect.


• The reason for this is that the subject matter of the contract, which is the specified goods, no longer exists.


• When the goods perish, there is nothing to sell or transfer ownership of.


• The parties to the contract cannot perform their obligations because the goods no longer exist.


• As a result, the contract is considered void from the beginning.


• Void contracts are treated as if they never existed, and both parties are released from their obligations.


• Neither party can sue the other for non-performance or seek any remedies under the contract.

Therefore, the correct answer is B: Void.