KSLU Solved Question Papers
Contract I
Previous Year Question Paper with Solution
B.A. LL.B. (Five Years) · Sem 4
2022 Oct Examination
munotes.in
Mumbai
B.A. LL.B. (Five Years) Sem 4 Contract I 2022 Oct 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 Oct examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2022 Oct 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 Oct 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/problem 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. Explain the rules as to revocation of acceptance.[10]
Answer
For full marks, cover: the definition of acceptance (section 2(b)) and what makes it valid (absolute and unqualified, section 7(1), Hyde v. Wrench; communicated, Felthouse v. Bindley); when the communication of an acceptance is complete (section 4: against the proposer on posting, against the acceptor on receipt); the rules on revoking an acceptance (section 5, second paragraph, and its illustration; how revocation is made and when it is complete, section 4 and illustration (c)); the "race" between a letter and a faster revocation; instant communication (Bhagwandas Kedia); the English contrast; worked examples; a conclusion.
Meaning of acceptance
Section 2(b) of the Indian Contract Act 1872 says a proposal is accepted "when the person to whom the proposal is made signifies his assent thereto". It adds: "A proposal, when accepted, becomes a promise".
Two conditions make an acceptance valid. It must be "absolute and unqualified" under section 7(1). And it must be communicated to the proposer.
Hyde v. Wrench, (1840) 3 Beav 334. A reply offering £950 for a farm offered at £1,000 was a counter-offer. It rejected the original offer, which could not be accepted later.
Felthouse v. Bindley, (1862) 11 CB (NS) 869. An uncle wrote that he would consider his nephew's horse his if he heard nothing more. The nephew stayed silent. The court held there was no contract. Silence is not acceptance.
When acceptance is complete
Section 4 gives two moments for an acceptance:
- 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".
- Against the acceptor, when "it comes to the knowledge of the proposer".
Illustration (b): B accepts A's proposal by a letter sent by post. The acceptance is complete against A when the letter is posted, and against B when A receives it.
The rules on revoking an acceptance
1. Up to when. Section 5, second paragraph: "An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards". So the acceptor may revoke until his acceptance reaches the proposer.
2. The Act's illustration. A proposes by post to sell his house to B, and B accepts by post. B "may revoke his acceptance at any time before or at the moment when the letter communicating it reaches A, but not afterwards".
3. How revocation is made. Under section 3, a revocation is made by any act or omission meant to communicate it, or which has that effect. In practice it is sent by a faster means, such as a telegram, a call or an e-mail.
4. When the revocation is complete. Section 4 says a revocation is complete against its maker when it is put in transmission. It is complete against the other party when it comes to his knowledge. Illustration (c): if B revokes his acceptance by telegram, it is complete against B when sent, and against A when it reaches him.
5. The race. So there is a race. Suppose the revocation reaches the proposer before the letter of acceptance, or at the same moment. The acceptance is then revoked, and there is no contract. If the letter of acceptance arrives first, the contract is complete and the revocation is too late.
6. No revocation for instant acceptance. Where acceptance is by telephone or face to face, it is complete when heard. Bhagwandas Goverdhandas Kedia v. M/s Girdharilal Parshottamdas and Co., AIR 1966 SC 543. The Supreme Court held that an acceptance by telephone is complete at the place where it is heard. There is no gap in which to revoke.
The English contrast
In England, once a letter of acceptance is posted, the contract is complete for both parties. The acceptor cannot revoke, even by a faster message. Indian law is kinder to the acceptor. It gives him the time the letter is in the post.
Worked examples
- A posts an offer, received by B on 1 March. B posts an acceptance on 1 March, received by A on 3 March. B telegraphs a revocation on 2 March, received by A the same day. The revocation arrived first, so there is no contract.
- On the same facts, the telegram reaches A on 4 March. The acceptance arrived first, on 3 March, so the contract is complete and the revocation fails.
Conclusion. Acceptance under section 2(b) is the offeree's absolute and communicated assent, which turns a proposal into a promise. A posted acceptance binds the proposer when it is posted, but binds the acceptor only when it reaches the proposer. So, under section 5, the acceptor may revoke it at any time before that moment, by a faster means. If his revocation arrives first, there is no contract. If the acceptance arrives first, the revocation fails. An acceptance by telephone is complete where heard, as Bhagwandas Kedia holds, and cannot be revoked.
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