All India Bar Examination (AIBE) 20 (XX) Previous Year Question Papers with Answers

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53.

As per the Indian Contract Act, 1872, an acceptance must be absolute and unqualified. What is the legal effect if an offeree's response to a proposal introduces a new term ?

A: It becomes a valid acceptance, and the new term is incorporated as a mere suggestion.
B: It operates as a valid acceptance if the new term is not a material alteration.
C: It constitutes a counter-proposal, thereby rejecting the original proposal.
D: It suspends the original proposal until the new term is accepted or rejected by the proposer.

The answer is: C