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

Nair Enterprises sends a catalogue offer stating that anyone who sends ₹500 along with a filled coupon will receive a water purifier. Deepa, aware of the offer, sends the ₹500 and coupon. Under the Act, what does her act amount to?

Deepa's act is an acceptance of the proposal. Under the Act, performing the conditions of a proposal, here sending ₹500 and the filled coupon, is itself acceptance. No separate communication or counter-proposal is needed to complete the agreement.

  1. AA counter-proposal that Nair Enterprises must accept
  2. BAn invitation to treat only
  3. CA mere inquiry with no legal effect
  4. DAcceptance of the proposal by performing its conditionsCorrect

Explanation

Performance of the conditions of a proposal is an acceptance of the proposal. Deepa sent the money and coupon as required, so she has accepted. Treating it as a counter-proposal would wrongly require a further step from the proposer.

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