AIBE III 2012 Question 26 Answer

AIBE III 2012 Question 26

Read this AIBE previous year question with options and the official answer-key label, or start the timed PYQ practice for the full paper.

LegalAlphabet is not the official AIBE portal and is not affiliated with or endorsed by the Bar Council of India or AIBE. Use the official AIBE portal for notices, admit cards, results, and final instructions.

Question 26 of 100 AIBE III 2012 Set Common

A offers to buy B's motorcycle for a price of Rs. 35,000/-. B replies that the motorcycle may be bought for Rs. 45,000/-. A immediately lets B know that it is not acceptable. Ten days later, B agrees to sell the motorcycle to A at Rs. 35,000/- and communicates his acceptance to A. Is there a valid contract between A and B?

A As B has accepted the initial offer made by A and communicated his acceptance to A, there is a valid contract between A and B.
B B was only negotiating the price and once it was determined that A would only accept Rs. 35,000/-, B communicated his acceptance to A and this resulted in a valid contract between A and B.
C B made a counter offer that A rejected, and since the counter offer caused A's initial offer to lapse, there is no valid contract between A and B. Official answer
D A failed to expressly revoke his initial offer, and hence B accepted A's initial offer resulting in a valid contract between A and B.
E A's rejection of B's offer is a counter offer, and B's acceptance of A's counter offer resulted in a valid contract between A and B.