KSLU Solved Question Papers
Contract I
Previous Year Question Paper with Solution
B.A. LL.B. (Five Years) · Sem 4
2022 Apr Examination
munotes.in
Mumbai
B.A. LL.B. (Five Years) Sem 4 Contract I 2022 Apr 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 2022 Apr examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2022 Apr examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2022 Apr 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 short note/Problems is compulsory from each Unit. (3) Figures to the right indicate marks. (4) Answer 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. Discuss the rules regarding a valid acceptance with leading cases.[10]
Answer
For full marks, cover: the definition of acceptance (section 2(b)) and its effect (a proposal accepted becomes a promise); the essentials one by one, each with its section or case: absolute and unqualified (section 7(1), Hyde v. Wrench); communicated, not silent (sections 3 and 4, Felthouse v. Bindley); by the person to whom the offer was made; in the prescribed or a usual and reasonable manner (section 7(2)); while the offer is alive (section 6, Ramsgate Victoria Hotel v. Montefiore); with knowledge of the offer (Lalman Shukla); by conduct where the offer allows (section 8); where acceptance is complete by telephone (Bhagwandas Kedia); 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." It adds that "a proposal, when accepted, becomes a promise".
So acceptance is the final assent to an offer, on its terms. It is the moment the bargain is struck. Before it, either side may walk away. After it, both are bound.
The essentials of a valid acceptance
1. It must be absolute and unqualified. Section 7(1) requires this. The acceptor must take the offer as it stands. A reply that changes a term, adds a condition or offers a lower price is a counter-offer, not an acceptance.
Hyde v. Wrench, (1840) 3 Beav 334. Wrench offered his farm for £1,000. Hyde offered £950, which Wrench refused. Hyde then said he accepted the £1,000 offer. The court held there was no contract. The counter-offer had rejected the original offer, and nothing was left to accept.
2. It must be communicated. A decision to accept, kept to oneself, is not acceptance. Under section 3, acceptance is made by an act or omission meant to communicate it, or which has that effect. Silence is not acceptance, and the offeror cannot make it so.
Felthouse v. Bindley, (1862) 11 CB (NS) 869. An uncle offered to buy his nephew's horse, writing: "If I hear no more about him, I consider the horse mine". The nephew never replied, though he told the auctioneer not to sell the horse. The auctioneer sold it by mistake. The court held there was no contract, because the nephew had never communicated acceptance.
3. It must be made by the person to whom the offer was made. Only the offeree can accept a specific offer. A stranger who hears of it cannot step in. A general offer may be accepted by anyone who knows of it.
4. It must be in the prescribed manner, or a usual and reasonable one. Section 7(2) says acceptance must be expressed "in some usual and reasonable manner, unless the proposal prescribes the manner". If the offeror prescribed a manner and the acceptor used another, the offeror may insist on his manner within a reasonable time. If he does not, he is taken to have accepted the acceptance.
5. It must be made while the offer is still open. Section 6 says an offer is revoked by notice of revocation, or by the lapse of the time fixed, or of a reasonable time. It is also revoked by the failure of a condition precedent, or by the offeror's death or insanity known to the acceptor. An acceptance after that comes too late.
Ramsgate Victoria Hotel Co. v. Montefiore, (1866) LR 1 Ex 109. The defendant applied for shares in June. The company allotted them only in November. The court held that his offer had lapsed after a reasonable time. So he was not bound to take the shares.
6. It must be made with knowledge of the offer. Acceptance answers an offer. Lalman Shukla v. Gauri Dutt (Allahabad High Court, 1913) held that a servant who found a missing boy before he knew of the reward could not claim it.
7. It may be by conduct, where the offer allows. Section 8 says performance of the conditions of a proposal is an acceptance. Under section 9, a promise accepted otherwise than in words is an implied promise.
Where the acceptance takes effect
Under section 4, the communication of an acceptance is complete 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". It is complete against the acceptor when it comes to the proposer's knowledge.
For instant means such as the telephone, the rule is different. Bhagwandas Goverdhandas Kedia v. M/s Girdharilal Parshottamdas and Co., AIR 1966 SC 543. An offer was made by telephone from Ahmedabad and accepted by the other party speaking from Khamgaon. The Supreme Court held that acceptance by telephone is complete where it is heard. So the contract was made at Ahmedabad, and the court there had jurisdiction.
| Essential | Source | Effect if missing |
|---|---|---|
| Absolute and unqualified | section 7(1), Hyde v. Wrench | a counter-offer |
| Communicated | sections 3 and 4, Felthouse v. Bindley | no contract |
| By the offeree | general rule | no contract |
| In the right manner | section 7(2) | offeror may insist on his manner |
| While the offer is open | section 6, Ramsgate | too late |
| With knowledge of the offer | Lalman Shukla | no acceptance |
| By conduct, if allowed | sections 8 and 9 | implied acceptance |
Conclusion. Acceptance under section 2(b) is the offeree's assent to the offer, and it turns the offer into a promise. To be valid it must be absolute and unqualified, communicated, made by the offeree, and given in the proper manner. It must also come while the offer is still open, and with knowledge of it. Hyde v. Wrench and Felthouse v. Bindley show what happens without the first two. Section 4 fixes when a posted acceptance takes effect, and Bhagwandas Kedia holds that an acceptance by telephone takes effect where it is heard.
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