A seller offers to sell a book for Rs. 500. The buyer replies, “I will buy it only for Rs. 400.” What…
Section 7(1) requires an absolute and unqualified acceptance. The buyer proposes a different price and thereby makes a counter-offer. A contract at Rs. 400 requires the…
Choose your answer
A seller offers to sell a book for Rs. 500. The buyer replies, “I will buy it only for Rs. 400.” What is the legal effect of the buyer’s reply?
Answer and explanation
Correct answer C
Section 7(1) requires an absolute and unqualified acceptance. The buyer proposes a different price and thereby makes a counter-offer. A contract at Rs. 400 requires the seller’s acceptance.
See section 7(1) of the Indian Contract Act, 1872.
Option feedback
Option A
The buyer states a new price as a condition of buying, going beyond a request for information.
Option B
A reply requiring a different price is not absolute and unqualified acceptance of the original offer.
Option C
The changed price rejects the original offer and proposes a new bargain.
Option D
The seller has made no acceptance of the buyer’s proposed price.
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