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    Question

    The acceptance given by “Y’ on X’s invitation for

    lunch over phone is not a contract because of which one of the following?
    A The acceptance was given orally Correct Answer Incorrect Answer
    B The parties did not talk face to face Correct Answer Incorrect Answer
    C There is no intention to create a legal obligation Correct Answer Incorrect Answer
    D Invitation cannot be proved in a court of law Correct Answer Incorrect Answer

    Solution

    (A) Communication of acceptance - This concept appears after the offer has been made and the offeree has accepted it. The communication of acceptance is the act of informing the offeror that the offeree has accepted the offer. (B) Deceit - This concept appears in the context of misrepresentation. If one party makes a false statement that induces the other party to enter into the contract, that is considered deceit or fraud. (C) Invitation to Offer - This concept appears at the beginning of a transaction, when one party invites the other party to make an offer. An invitation to offer is not an offer itself but an invitation to make an offer. (D) Damages - This concept appears in the context of breach of contract. If one party fails to fulfill their obligations under the contract, the other party may be entitled to damages as compensation for their losses. Therefore, the correct sequence of the following concepts in which they appear in a contract is: (C) Invitation to Offer, (A) Communication of acceptance, (B) Deceit, and (D) Damages.

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