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A seller offers to sell a book for ₹500. The buyer replies, “I will buy it only for ₹450.” The seller…

Section 7(1) requires absolute and unqualified acceptance. The buyer’s insistence on a different price rejects the original offer and constitutes a new proposal. The…

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A seller offers to sell a book for ₹500. The buyer replies, “I will buy it only for ₹450.” The seller communicates unqualified agreement to ₹450. What is the legal effect of these exchanges under the Indian Contract Act, 1872?

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Answer and explanation

Correct answer C

Section 7(1) requires absolute and unqualified acceptance. The buyer’s insistence on a different price rejects the original offer and constitutes a new proposal.

The seller’s communicated assent accepts the new proposal at ₹450 under sections 2 and 4. In Padia Timber, the Supreme Court explained that a response introducing a new condition requires assent to that condition before an agreement is concluded.

Option feedback

Option A

The buyer insists on a different price. Section 7 requires unqualified acceptance of the actual offer.

Option B

The buyer is the proposer at ₹450. The seller’s unqualified assent accepts that new proposal.

Option C

The buyer proposes a different price as a condition of purchase. The seller’s unqualified agreement accepts the new proposal.

Option D

The buyer makes a definite proposal at ₹450 by saying they will buy only at that price. A mere inquiry would ask whether the seller might reduce the price without proposing a purchase.

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