📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    As per Section 7(2) of the Indian Contract Act, 1872, if

    a proposal prescribes a specific manner in which acceptance must be made, and the acceptance is not made in that manner, which statement is legally accurate? 
    A The acceptance is automatically void and no contract is formed Correct Answer Incorrect Answer
    B The proposer may insist, within a reasonable time after acceptance is communicated, that acceptance be in the prescribed manner; if he fails to do so, he accepts the acceptance Correct Answer Incorrect Answer
    C The acceptance is valid but the proposer can claim damages for non-compliance Correct Answer Incorrect Answer
    D The proposer must accept it regardless of the manner prescribed Correct Answer Incorrect Answer
    E The manner of acceptance is entirely within the discretion of the offeree Correct Answer Incorrect Answer

    Solution

    Section 7(2) explicitly states: "If the proposal prescribes a manner in which it is to be accepted, and the acceptance is not made in such manner, the proposer may, within a reasonable time after the acceptance is communicated to him, insist that his proposal shall be accepted in the prescribed manner, and not otherwise; but if he fails to do so, he accepts the acceptance." This provision provides flexibility and grace to the proposer. The proposer has the option to either insist on the prescribed manner (within a reasonable time) or accept the non-conforming acceptance by implied conduct. This balances strict formalism with commercial practicality, as established in various contract law precedents where courts have held that strict adherence to prescribed modes should not lead to unjust outcomes.

    Practice Next
    ask-question