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    Question

    According to the provisions of the Contract Act, what

    happens when a proposal is accepted?
    A The proposal becomes a contract Correct Answer Incorrect Answer
    B The proposal becomes a promise Correct Answer Incorrect Answer
    C The proposal is considered rejected Correct Answer Incorrect Answer
    D The proposal is put into action immediately Correct Answer Incorrect Answer
    E Either a or d Correct Answer Incorrect Answer

    Solution

    Section 2. Interpretation-clause: (b) When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.

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