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A proposal prescribes acceptance by registered post. The offeree accepts unconditionally by email instead, and the proposer does not insist on the prescribed mode within a reasonable time. What is…

Question and options

A proposal prescribes acceptance by registered post. The offeree accepts unconditionally by email instead, and the proposer does not insist on the prescribed mode within a reasonable time. What is the position under section 7 of the Indian Contract Act, 1872?

  1. The acceptance is void because the prescribed mode was not used

  2. The contract made by email is voidable at the proposer's option

  3. The proposer is taken to have accepted the email acceptance

  4. The proposer may insist on registered post at any later time

Answer and explanation

Correct answer: C - The proposer is taken to have accepted the email acceptance

Under section 7(2) of the Indian Contract Act, 1872, if acceptance is not made in the prescribed manner, the proposer may within a reasonable time after it is communicated insist that it be made in the prescribed manner; if he fails to do so, he accepts the acceptance. A departure from the mode does not by itself make the acceptance void, and the right to insist is lost once the reasonable time passes.

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