PRINCIPLE: Acceptance should be made while the offer is still subsisting. The offeror is free to retract his offer at any time before his offer gets accepted by the offeree. Once the offer is withdrawn or is lapsed, it is not open to be accepted so as to give rise to a contract. Similarly, if a time is prescribed within which the offer is to be accepted, then, the offer must be accepted within the prescribed time. And, if no time is prescribed, then, the acceptance must be made within a reasonable time. 'What is a reasonable time', is a question of fact which is to be determined by taking into account all the relevant facts and surrounding circumstances. FACTS: 'X' makes an offer to 'Y' to sell his equipment for Rs. 1,000.00. No time is specified for the acceptance. 'Y' sends his reply two years after receiving the offer. Which of the following derivations is CORRECT?

PRINCIPLE: Acceptance (of offer) must be communicated by the offeree to the offeror so as to give rise to a binding obligation. The expression 'by the offeree to the offeror' includes communication between their authorised agents. FACTS: 'X' made an offer to buy Y's property for…

PRINCIPLE: Minor's agreement is void from the very beginning. It can never be validated. It cannot be enforced in the court of law. FACTS: 'A', a boy of 16 years of age, agrees to buy a camera from 'B', who is a girl of 21 years of age. Which of the following derivations is CORRE…

PRINCIPLE: A proposal (offer) should be made with an intention that after its valid acceptance, a legally binding promise or agreement will be created. The test for the determination of such intention is not subjective, rather it is objective. The intention of the parties is to b…

PRINCIPLE: A contract which is duly supported by real and lawful consideration is valid notwithstanding the fact that the consideration is inadequate. The quantum of consideration is for the parties to decide at the time of making a contract, and not for the courts (to decide) wh…

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. The expression of willingness/desire results in a valid proposal on…

PRINCIPLE: The consideration or object of an agreement is unlawful if it is forbidden by law. Every agreement of which the object or consideration is unlawful is void. FACTS: 'X', promises to pay 'Y' Rs. 50,000, if he ('Y') commits a crime. 'X' further promises to indemnify him (…

PRINCIPLE: The consideration or object of an agreement is unlawful if the Court regards it as opposed to public policy. Every agreement of which the object or consideration is unlawful is void. FACTS: 'X' promises to obtain for 'Y' an employment in the public service; and 'Y' pro…

PRINCIPLE: Two or more persons are said to consent if they agree upon the same thing in the same sense. Consent is said to be free when it is not caused by coercion, or undue influence, or fraud, or misrepresentation, or mistake. When consent to an agreement is caused by coercion…