M.

law Marks: 25
Test Chapter 2 Time: 50 mins

Section A

1. A plumber was hired by Mr. Arish Khan to install a sprinkle system at his House numbered 9C . The
plumber mistakenly installed the system at a wrong house owned by Mr. Khawar Mirza,who knowingly
didn’t stop him. Which of the following statement is correct :-

(a) There is no contract between Mr. Mirza and the Plumber

(b) There is an implied contract between the plumber and Mr. Mirza

(c) There needs to be an express contract between the two parties for enforceability

(d) None of above

2. Sri told his employer that he will leave his job if his salary was not increased. The employer increased
the salary. According to Contract Act 1872 :

(a) This is a illegal contract due to lack of free consent

(b) This is a voidable contract due to lack of free consent

(c) This is a valid contract

(d) This type of contract is only valid if in written ,so is unenforceable.

3. Mr. Jamal Ulfat offered to sell his Honda 70 to Mr Kamal Pasha for Rs.30000 if Mr. Pasha runs 5 laps of
the local marathon.According to Contract Act 1872 :

(a) This is a valid offer

(b) The offer is invalid as it is conditional.

(c) The offer is invalid as running laps is not monetary.

(d) None of above

4. Jandar Khan sent an offer to sell his car to Mr. Munhani Khan via email and asked Mr. Munhani to
send his reply in email as well. Mr. Munhani replied/accepted via post .According to Contract Act 1881:-

(a) Jandar Khan should not accept this acceptance

(b) The offer is automatically rejected as reply wasn’t sent in the prescribed mode.

(c) Jandar Khan may o may not accept the acceptance but in order to accept it he will have to confirm
his acceptance expressly

(d) Jandar may refuse the acceptance

5. Salamat Hussain sent an offer to Karamat Baksh through post on 25th January. Mr. Salamat however
changed his mind and sent a revocation letter to Mr. Baksh on 26 th January. Mr. Baksh received the
offer on 1st February and sent an acceptance on the same day and received revocation of offer the next
day. According to Contract Act 1872 all of the following are false except :-

(a) The contract is formed on 1st Feb against both parties

(b) The offer is successfully revoked

(c) The acceptance will be valid only if the letter is correctly stamped ,addressed and received

(d) Mr. Baksh can still revoke his acceptance .

6. Ms.Aliza Khanum announced in the local newspaper that whoever brings him an Kawasaki 1982
motorcycle she will pay him Rs.70,000 no matter what the condition of the bike is as long as the chasis
number is intact. Mr. Habib Mirza brought the said bike with the chasis no intact and demanded
payment.

(a) Ms. Khanum will have to pay as this is a valid contract

(b) This is a voidable contract

(c) The offer was invalid as it was just an invitation to offer

(d) None of above

7. Mr. Javaid offered to sell his bike to Mr. Allah Wasaya via a letter . Mr. Wassaya accepted the offer by
posting a letter on 10th January. The letter reached Mr.Javaid on 13th January. Which of the following
statement is true :-

(a) Mr. Javaid can revoke his offer at any time before receiving the letter on 13th January.

(b) Mr. Wassaya can revoke his acceptance only before posting it on 10th January

(c) Mr. Javaid can revoke his offer only before Mr. Wassaya posted his acceptance on 10th January.

(d) Mr. Wassaya cannot revoke his acceptance once he has posted in on 10 th January.
8.Ms.Asia made an offer to sell her gaming card to Ms.Alia via phone and said that if she accepted the
offer she can call back any time.Ms. Alia made her mind that she is going to accept the offer and even
told that to a common friend. Later Ms. Asia revoked the offer but Ms. Alia said that a contract has
already been made as she had made up her mind to accept the offer.. Is Ms. Alia’s’s assertion true :-

(a) Yes,as she had made a mental acceptance and there was an implied contract.

(b) No, as mental acceptance is not valid acceptance

(c) None of above

9.Mr.Kamran offered to sell his coat to Mr.Jabbar .Mr.Jabbar requested him to keep the offer open for a
week to which Mr.Kamran agreed but before the week was over he revoked his offer. Is the offer
revoked :-

(a) No, as this was a scenario where a separate option contract was formed and Mr.Kamran was bound
to keep the offer open.

(b) Yes as offer can be revoked any time before acceptance

(c) None of above

10. Which of the following statements regarding counter-offers is correct?

(a) Counter-offers may be accepted by the original offeror

(b) Counter-offers do not terminate the original offer

(c)A statement that enquires whether alternative terms would be acceptable is a counter-offer

(d)A counter-offer is made by the original offeror to the original offeree

Section B

1. Mr. Hawaldar Mirza sent an offer to sell his business to Mr. Thanedar at a cost of Rs.1 million. Mr.
Thanedar sent his acceptance via email on the same day but Mr. Mirza had died unfortunately before
receiving the acceptance. According to the Contract Act 1881 comment on the validity of the
acceptance.(03)

2. Sardar Khizer is a trading consultant who wants to construct a new office. He puts an advertisement in
the newspaper specifying the type of building he wants to be constructed and price he is ready to pay.
The advert mentions that firms fulfilling the criteria should contact Mr. Sardar. Altd , a construction
company, writes a letter to MR. Khizer mentioning that they accept his offer and are ready to build the
building. Comment on the validity of the contract. (03)
3. : Under the provisions of the Contract Act, 1872 list the essentials of a valid offer.(09)
Section A

1. b

2. c

3.a

4.d

5.d

6.a

7.C

8.B

9.B

1O.A

Section B

1. An offer comes to an end by the death or insanity of the offeror if the fact of his death or insanity
comes to the knowledge of the acceptor before acceptance. Here as the offer seems to be accepted
without the knowledge of the death of the offeror a valid contract is formed.

2. This is not a valid contract as the newspaper advertisement was just an invitation to offer rather than
being an offer in itself. The intention in invitation of an offer is to circulate information of his readiness
to do the transaction. Such intentions are not offers and do not tantamount to promise on acceptance.
In other words, an invitation of an offer means an intention of a person to invite others with a view to
enter into an agreement.

3. Two persons: For a valid offer there needs to be two persons. A person cannot make an offer to
himself. The person making the proposal is called offeror and the person to whom offer is made is called
offeree

Certain and definite :A valid offer is one which is certain and definite. Thus, no contract can come into
existence if offer is uncertain

Contractual intention: An offer must be made with an intention to create a contract

Communication : The offer must be communicated to the offeree. The communication is complete
when it comes to the knowledge of the person to whom it is made. In case an offer is made by post, its
communication will complete when the letter reaches the offeree. An offer can be made by words
spoken or written or through conduct of the person

Objective of consent :An offer must be made with a view to obtain the consent of the other person to
proposed act or abstinence.

Conditional: An offer may be subject to some condition. It is on the sole discretion of the person to
whom such offer is made to either accept or reject it. A conditional offer lapses when condition is not
accepted

Negative confirmation: An offer cannot be in the form of negative confirmation i.e. if it is not accepted
within a specific time then it will be presumed to have been accepted

Invitation of an offer: An offer is different from an invitation of an offer. The intention in invitation of an
offer is to circulate information of his readiness to do the transaction

Communication of special conditions: When there are special terms and conditions in an offer these
must be specifically communicated to the other party

Extra Notes

ILLEGAL AGREEMENT VOID AGREEMENT

Nature All illegal agreements are void All void agreements may not be
agreements. illegal.
Prohibited and punished Such agreements are prohibited Such agreements may not be
by law and are also punishable prohibited by law and are not
offence punishable unless also illegal.
Collateral A collateral agreement to an A collateral agreement to a void
illegal agreement is not agreement may not be
enforceable. enforceable.