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Which of these replies to an offer is a counter-offer rather than an acceptance?

Question and options

Which of these replies to an offer is a counter-offer rather than an acceptance?

  1. Asking whether earlier delivery is possible, without making it a condition

  2. Accepting and asking for a signed copy of the agreed terms

  3. Accepting by email when the offer prescribed no mode

  4. Accepting on condition that the price is cut by ten per cent

Answer and explanation

Correct answer: D - Accepting on condition that the price is cut by ten per cent

Section 7(1) of the Indian Contract Act, 1872 requires an absolute and unqualified acceptance, so a reply that makes acceptance conditional on a new term, such as a lower price, is a counter-offer that rejects the original offer (Hyde v Wrench). A mere inquiry about terms is not a counter-offer (Stevenson v McLean), and asking for a written record or using any reasonable mode when none is prescribed does not qualify the acceptance.

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