KSLU Solved Question Papers
Contract I
Previous Year Question Paper with Solution
B.A. LL.B. (Five Years) · Sem 4
2019 Dec Examination
munotes.in
Mumbai
B.A. LL.B. (Five Years) Sem 4 Contract I 2019 Dec Question Paper with Solutions
First published on munotes.in on 21 October 2026.
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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2019 Dec examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2019 Dec examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2019 Dec examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 80 · 20 questions answered
Instructions printed on the paper
- N.B. (1) Answer all five Units. (2) One essay type question and one problem or one short note are compulsory from each Unit. (3) Figures to the right indicate marks. (4) Answers should be written either in English or Kannada completely.
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1
Unit I
(a)Define acceptance and what is the effect of acceptance ?[10]
Answer
For full marks, cover: the definition of acceptance (section 2(b)) and its two requirements in brief (absolute and unqualified, section 7; communicated, section 3), with Hyde v. Wrench on what is not an acceptance; the effects of acceptance one by one: the proposal becomes a promise (section 2(b)); an agreement, and a contract if enforceable, comes into being (sections 2(e) and 2(h)); the proposal can no longer be revoked (section 5); the times at which each party is bound (section 4); the place where the contract is made (Bhagwandas Kedia); acceptance by conduct (section 8, Carlill); no later formal document is needed (Trimex International v. Vedanta Aluminium); a table; a conclusion.
Meaning
Section 2(b) of the Indian Contract Act 1872 says: "When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted". Acceptance is the final and unconditional assent of the offeree to the terms of the offer.
Two requirements make it valid. It must be "absolute and unqualified" under section 7(1). And it must be communicated, by an act or omission that conveys it, under section 3.
Hyde v. Wrench, (1840) 3 Beav 334. Wrench offered his farm for £1,000. Hyde offered £950, which Wrench refused, and Hyde then tried to accept the £1,000 offer. The court held there was no contract. A reply that changes the terms is not an acceptance. It is a counter-offer that rejects the original offer.
The effects of acceptance
1. The proposal becomes a promise. Section 2(b) ends: "A proposal, when accepted, becomes a promise". Before acceptance, the proposer has only offered. After it, he has promised, and is bound.
2. An agreement, and usually a contract, comes into being. Section 2(e) says "every promise and every set of promises, forming the consideration for each other, is an agreement". Section 2(h) adds that "an agreement enforceable by law is a contract". So acceptance completes the agreement. If the other essentials of section 10 are present, it is a contract at that moment.
3. The proposal can no longer be revoked. Section 5 says a proposal "may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards". Once acceptance is complete against him, the proposer cannot withdraw.
4. Each party is bound from a fixed time. Section 4 gives the timing:
- the proposer is bound when the acceptance "is put in a course of transmission to him, so as to be out of the power of the acceptor";
- the acceptor is bound when the acceptance "comes to the knowledge of the proposer".
So a posted acceptance binds the proposer when posted, and the acceptor when it arrives. Until then, the acceptor may still revoke it under section 5.
5. The place of the contract is fixed. Where acceptance is by an instant means, it is complete where it is heard.
Bhagwandas Goverdhandas Kedia v. M/s Girdharilal Parshottamdas and Co., AIR 1966 SC 543. An offer made in Ahmedabad was accepted by telephone by a party speaking from Khamgaon. The Supreme Court held that the contract was made at Ahmedabad, where the acceptance was heard. So the Ahmedabad court had jurisdiction. The place of acceptance can decide which court may try a dispute.
6. Acceptance by conduct makes a contract. Section 8 says that "performance of the conditions of a proposal ... is an acceptance of the proposal".
Carlill v. Carbolic Smoke Ball Co., [1893] 1 QB 256. The company advertised a £100 reward to anyone who caught influenza after using its smoke ball as directed. Mrs Carlill did so and caught influenza. The Court of Appeal held that her performance of the conditions was acceptance, and a binding contract arose. Notice of acceptance was not needed.
7. No later formal document is needed. Once the essential terms are agreed, the contract exists even if a formal document was meant to follow.
Trimex International FZE Ltd. v. Vedanta Aluminium Ltd., decided by the Supreme Court on 22 January 2010. After an exchange of e-mails, the buyer wrote, "we confirm the deal for 5 shipments". A formal purchase order sent later was never signed. The Court held that a concluded contract had been formed by the e-mails. The unsigned formal order did not undo it.
| Effect | Source |
|---|---|
| Proposal becomes a promise | section 2(b) |
| Agreement, and contract if enforceable | sections 2(e), 2(h), 10 |
| Proposal no longer revocable | section 5 |
| Proposer bound on dispatch; acceptor on receipt | section 4 |
| Place of contract fixed | Bhagwandas Kedia |
| Performance is acceptance | section 8; Carlill |
| No formal document needed | Trimex |
Conclusion. Acceptance under section 2(b) is the offeree's absolute and communicated assent, and a counter-offer, as in Hyde v. Wrench, is not acceptance. Its effect is that the proposal becomes a promise and an agreement is formed, which is a contract if section 10 is satisfied. The proposer can no longer revoke, and section 4 fixes when each party is bound. Bhagwandas Kedia shows that acceptance also fixes the place of the contract. Carlill shows that conduct may accept, and Trimex that no later formal document is needed.
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