MCQ 12 Dec 2023

Daily practice questions for CLAT - (12 December 2023)



An offer is also called "proposal'. The words 'proposal' and 'offer' are synonymous and are used interchangeably. Section 2(a) defines the term 'proposal' as follows: "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. An offer can be made by any act which has the effect of communicating it to the other. An offer may either be an 'express offer' or an 'implied offer'. According to law, an offer can be accepted only by the person to whom it is made. Hence, we must know how to identify the person to whom the offer has been made. From this point of view, an offer may be 'specific' or 'general. Acceptance is an expression by the offeree of his willingness to be bound by the terms of the offer. This results in the establishment of legal relations between the offerer and offeree. Section 2(b) of the Indian Contract Act defines the term 'acceptance' as "when the person to whom the proposal is made signages his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise. An offer can be accepted only by the person or persons to whom it is made. An offer made to a particular person (specific offer) can be accepted only by him and none else. You know that an offer may be either express or implied. Similarly, the acceptance may also be either express or implied. When the acceptance is given by words spoken or written, it is called an 'express acceptance'. For example, A offers to sell his book to B for Rs. 20. B may accept this offer by stating so orally or by writing a letter to A. The acceptance may also be implied by conduct. For example, A offers a reward of Rs. 100 to anyone who traces his lost dog. B, who was aware of this offer, finds the dog; he is entitled to the reward as he accepted the offer by doing the required act.

Question1:- Company ABC, which runs a bus service, stops at a nearby bus stop without expressly offering the passengers to board the bus. Decide on the formation of a contract.
  • A. Company ABC has made an implied offer to passengers standing at the bus stop B. Company ABC has made an express offer to passengers standing at the bus stop C. The passengers standing at the bus stop would have to make an offer to the Company D. The Company or the passengers cannot make an offer in this situation
Answer is A is correct. An offer or proposal to enter into a contract can be either expressed through words spoken or written or it can also be an implied offer which is made through the conduct of the person making the offer. In this situation, the company made an implied offer to the passengers at the bus stop as it stopped at the bus stop for picking up the passenger. Hence (A) is the correct answer.
Question2:- Rajat makes an offer to Rohit, to sell his car for Rs. 10 Lakhs; however, Rohit replies that he is willing to buy the car for Rs. 7 Lakhs. Decide the status of the formation of a contract.
  • A. The original offer of Rajat would still be applicable B. The original offer of Rajat would lapse and Rohit cannot compel Rajat C. Rajat would be bound to accept the offer of Rs. 7 lakhs as he had already made an offer D. Rohit would be entitled to claim damages from Rohit for breach of Contract
Answer is B is correct. In this scenario, Rohit has made a new offer to Rajat for buying his car at the price of Rs. 7 Lakhs, therefore, the original offer of Rajat would lapse and now Rohit cannot compel Rajat to sell that car at the same price. Hence, (B) is the correct answer.
Question3:- which of the following cannot be considered as a general offer?
  • A. A makes a public advertisement to sell his car B. ABC Company distributes pamphlets for hiring employees C. A writes a letter to B making an offer to sell his car D. Company ABC displays a commercial on TV to sell their product
Answer is C is correct. An offer can be either general or specific. When an order is made to the general public and anybody can accept it then it would be considered as a general offer, however, when an offer is made to a particular person it would be considered as a particular offer and can be accepted by that particular person only. Hence, (C) is the correct answer.
Question4:- Aman runs a shop in Delhi that sells antique showpieces. What would be the contract status for the act of displaying showpieces on the display board?
  • A. Considered as an implied offer B. Would be considered as an invitation to offer C. Would be Considered as an express offer D. Would be considered as Acceptance to the offer made by the customers
Answer is B is correct. In this scenario, Aman would be said to have made an invitation to offer. Hence, a customer cannot compel him to sell his products and it is the customer who would make an offer to Aman and it would be up to Aman to accept that offer or to reject it. Hence, option (b) is the correct answer.
Question5 :- A invites B as a guest to the inauguration party of his newly opened car showroom, and B accepts it, however, B does not attend the party, and subsequently, A sues B for breach of contract. Decide the liability of B and also what A is entitled to receive.
  • A. A would be entitled to receive damages from B as he had made a valid offer B. A would not be entitled to receive damages as he did not make a valid offer C. A would be entitled to receive damages only if he has suffered actual loss D. B would be liable to officially revoke the offer
Answer is B is correct. One of the essentials to make a valid offer is that it should be made with an intention to enter into legal obligations and in this scenario, A has not made an offer to B with an intention to enter into a legal obligation, therefore it cannot be considered as a valid offer. Hence, (B) is the correct answer.