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CMA Foundation · Fundamentals of Business Laws and Business Communication · Essential Elements of a Contract, Offer and Acceptance

Nair Agro offers to supply 50 quintals of wheat to Deshmukh. Deshmukh replies, 'I accept, but delivery must be at my godown instead of yours.' Which statement is correct under Section 7?

No promise arises, because acceptance must be absolute and unqualified to convert a proposal into a promise. Deshmukh's reply changes the place of delivery, so it does not match the proposal exactly and is not a valid acceptance.

  1. AA contract is formed because the main terms are accepted
  2. BA contract is formed and only the delivery term is void
  3. CNo promise arises because the acceptance is not absolute and unqualifiedCorrect
  4. DA contract is formed and voidable at Nair Agro's option

Explanation

Section 7(1) requires acceptance to be absolute and unqualified to convert a proposal into a promise. Changing the delivery place qualifies the acceptance, so no promise arises. The qualified reply cannot make a contract voidable or partly void.

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