CMA Foundation · Fundamentals of Business Laws and Business Communication · Essential Elements of a Contract, Offer and Acceptance
Ravi offers a reward of ₹5,000 to anyone who finds and returns his lost dog. Kiran, aware of the offer, finds and returns the dog. Under the Act, Kiran's act amounts to:
Kiran's return of the dog is acceptance of the proposal. The Act says that performing the conditions of a proposal is an acceptance, so a separate spoken or written acceptance is not required, and Kiran can claim the reward.
- AAcceptance of the proposal by performance of its conditionsCorrect
- BA counter-proposal needing Ravi's approval
- COnly an invitation to treat
- DNo acceptance, since no words were spoken to Ravi
Explanation
Section 8 states that performance of the conditions of a proposal is an acceptance of it. Kiran performed the condition by returning the dog, so no separate verbal acceptance is needed.
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