Government of India
Bare Act As Per The Government of India

Section 7 of Indian Contract Act

7. Acceptance must be absolute.— In order to convert a proposal into a promise, the acceptance must—

(1) be absolute and unqualified;
(2) be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it is to be accepted. 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.

MCQs Based on Section 7 of the Indian Contract Act, 1872

Q1. According to Section 7 of the Indian Contract Act, 1872, acceptance of a proposal must be:

A. Conditional and partial
B. Absolute and unqualified
C. Implied and vague
D. Delayed and modified

Correct Answer: B. Absolute and unqualified
Explanation: Section 7(1) clearly states that acceptance must be absolute and unqualified. If the acceptance introduces any condition, it is treated as a counter-offer, not acceptance.

Q2. If an offer specifies a particular manner of acceptance and the offeree accepts it in a different manner, what should the proposer do?

A. Reject the proposal immediately
B. File a case in court
C. Object within a reasonable time
D. Automatically accept the offer

Correct Answer: C. Object within a reasonable time
Explanation: Section 7(2) allows the proposer to insist on the prescribed mode of acceptance, but only if he objects within a reasonable time after receiving the acceptance.

Q3. If the proposer does not object to the manner of acceptance that differs from the prescribed one, what is the result?

A. The contract becomes void
B. The acceptance is invalid
C. The proposer is deemed to have accepted the acceptance
D. The offer stands cancelled

Correct Answer: C. The proposer is deemed to have accepted the acceptance
Explanation: If the proposer fails to object to the different mode within a reasonable time, he is taken to have accepted that acceptance, as per Section 7(2).

Q4. Which of the following statements is true under Section 7 of the Indian Contract Act?

A. A counter-offer is considered valid acceptance.
B. Acceptance can be implied even if it is conditional.
C. Acceptance must mirror the terms of the offer exactly.
D. Delayed acceptance is always valid.

Correct Answer: C. Acceptance must mirror the terms of the offer exactly
Explanation: This is known as the “mirror image rule” – acceptance must be absolute and match the terms of the offer exactly to form a valid contract.

Q5. A offers to sell his car to B for ₹2,00,000 and asks for a written acceptance by courier. B sends acceptance through email. What is the legal position?

A. The acceptance is valid in all cases
B. The acceptance is automatically void
C. The proposer must object within reasonable time if not satisfied
D. The offeree must resend the acceptance via courier

Correct Answer: C. The proposer must object within reasonable time if not satisfied
Explanation: Since A specified the mode of acceptance (courier), B’s email is not as per instructions. However, if A does not object within a reasonable time, it will be considered valid acceptance under Section 7(2).

Q6. A counter-offer results in:

A. Rejection of the original offer
B. Automatic formation of contract
C. Acceptance of original offer
D. Revocation of acceptance

Correct Answer: A. Rejection of the original offer
Explanation: A counter-offer is not acceptance; it actually terminates the original offer and proposes new terms, as per contract law principles.

Q7. Under Section 7, if no mode of acceptance is prescribed in the proposal, the acceptance:

A. Must be oral only
B. Can be in any manner as long as it is unreasonable
C. Must be in some usual and reasonable manner
D. Is always invalid unless written

Correct Answer: C. Must be in some usual and reasonable manner
Explanation: Where no mode is prescribed, the law assumes acceptance must be in a usual and reasonable manner, depending on the nature of the transaction.

Section 7: Condition-Based Practice Questions

Q1. Which of the following is a mandatory condition for a valid acceptance under Section 7?

A. It must be conditional
B. It must be absolute and unqualified
C. It must be written only
D. It must be approved by a witness

Answer: B. It must be absolute and unqualified

Q2. If an offer prescribes a specific manner of acceptance, but the offeree accepts it in a different way, the proposer must:

A. Accept it as valid
B. Object within a reasonable time
C. Cancel the contract immediately
D. Ignore the acceptance

Answer: B. Object within a reasonable time

Q3. Which of the following statements is true under Section 7?

A. A counter-offer is valid acceptance
B. Acceptance must be in the prescribed manner only, and there is no exception
C. If no manner is prescribed, acceptance must be in a reasonable and usual manner
D. Acceptance can be vague and still form a contract

Answer: C. If no manner is prescribed, acceptance must be in a reasonable and usual manner

Q4. If the proposer fails to object to a different mode of acceptance within a reasonable time, the law considers:

A. The acceptance as invalid
B. The contract to be void
C. That the proposer has accepted the acceptance
D. That the offer has expired

Answer: C. That the proposer has accepted the acceptance

Q5. A counter-offer results in:

A. Formation of a valid contract
B. Extension of the original offer
C. Rejection of the original offer
D. Automatic acceptance by proposer

Answer: C. Rejection of the original offer

Section 7: Problem-Based Practice Questions

Problem 1:

A offers to sell his furniture to B for ₹50,000 and asks for acceptance through email. B sends a letter by post accepting the offer.

A receives the letter but does not respond for a week.

Question: Is there a valid contract?

Answer: Yes. Even though B did not use the prescribed mode (email), A did not object within a reasonable time. So, acceptance is deemed valid under Section 7(2).

Problem 2:

X offers to sell his land to Y for ₹10 lakhs. Y replies, “I accept, but only if you include the borewell pump.”

X refuses.

Y then agrees to the original offer without conditions. X still refuses.

Question: Is X bound by contract?

Answer: No. Y made a counter-offer, which terminated the original offer. His later acceptance is a new offer, and X is not obliged to accept it.

Problem 3:

A makes an offer to B to supply 500 bags of wheat, without specifying how to accept. B sends a WhatsApp message saying “Accepted.”

Question: Is the contract valid?

Answer: Yes. Since no method was prescribed, acceptance through a reasonable and usual mode (such as WhatsApp in modern practice) is valid under Section 7.

Problem 4:

P makes an offer to Q and says, “If you’re okay, reply by registered post.” Q replies by ordinary post. P rejects the contract after 10 days, saying the mode of acceptance was wrong.

Question: Is P’s rejection valid?

Answer: No. P did not object to the mode of acceptance within a reasonable time, so he is deemed to have accepted the different manner of acceptance.

Problem 5:

L offers to sell his car to M for ₹4 lakhs. M says, “I accept the offer for ₹3.5 lakhs.” L says no. Two days later, M says, “Okay, I agree to buy for ₹4 lakhs.”

Question: Is L legally bound to sell now?

Answer: No. M’s first response was a counter-offer, which cancelled L’s original offer. M’s later agreement is a new offer, and L is free to accept or reject it.

Problem 6:

Condition: A proposal must be accepted in the manner prescribed, if any. If not, the proposer must object within a reasonable time.

Problem: A proposes to sell his bike to B for ₹60,000 and says, “If you agree, send your acceptance by courier within 3 days.”
B receives the letter and immediately sends his acceptance by email on the same day.

After receiving the email, A does not respond and after 5 days says, “I don’t accept it because you didn’t send the acceptance by courier.”

Question: Is there a valid contract between A and B?

Answer (with explanation): Yes, there is a valid contract. Even though B did not accept in the prescribed manner, A did not object within a reasonable time. Under Section 7(2), if the proposer fails to insist on the prescribed manner within a reasonable time, he is deemed to have accepted the acceptance.

Problem 7:

Condition: Acceptance must be absolute and unqualified. Any change in terms is a counter-offer, not acceptance.

Problem: X offers to sell his mobile phone to Y for ₹20,000. Y replies, “I will buy it for ₹18,000.” X rejects the offer. Two days later, Y again says, “Okay, I agree to buy it for ₹20,000.”
X refuses to sell now.

Question: Is X legally bound to sell the phone to Y?

Answer (with explanation): No, X is not legally bound. Y’s first response was a counter-offer which terminated X’s original offer. When Y later accepted the original price, it was a new offer, and X was free to reject it. Under Section 7(1), acceptance must be unqualified to be valid.

Problem 8:

Condition: If no mode of acceptance is prescribed, it must be done in a usual and reasonable manner.

Problem: P sends an offer to Q to buy 100 bags of cement but does not mention how to accept the offer. Q sends back a written acceptance by post, which reaches P after 4 days.
P says he expected a quicker response by phone and now does not wish to proceed.

Question: Is P bound by Q’s acceptance?

Answer (with explanation): Yes, P is bound. Since no particular method of acceptance was prescribed, Q was free to accept the offer in a reasonable manner. Sending acceptance by post is a usual and reasonable mode, especially in business communication. Under Section 7(2), such acceptance is valid.

Problem 9:

Condition: If proposer does not object to a different manner of acceptance within reasonable time, he accepts it.

Problem: A offers to sell his car to B and says, “If you are interested, reply via WhatsApp by tomorrow.”
B sends an acceptance via SMS within the same day.
A receives the SMS but replies only after 4 days saying the method was incorrect.

Question: Can A reject the contract?

Answer (with explanation): No, A cannot reject the contract now. He should have objected within a reasonable time (which he failed to do). As per Section 7(2), silence or delay in objection means the proposer has accepted the acceptance.

Problem 10:

Condition: Acceptance can be oral or written unless a specific manner is prescribed.

Problem: D offers to sell his house to E and says, “Let me know if you agree.” E immediately says in person, “I accept your offer.” D later says he wanted it in writing.

Question: Is the acceptance valid?

Answer (with explanation): Yes, the acceptance is valid. Since D did not prescribe any specific method of acceptance, E’s oral acceptance in person is a reasonable and valid mode. D cannot later insist on a written reply.

Final Thoughts

Introduction

A valid contract under Indian law is formed when one party makes an offer (proposal) and the other party accepts it. But not every acceptance leads to a contract. For the acceptance to convert the offer into a legal promise, it must follow certain rules. Section 7 lays down these rules.

1. Acceptance Must Be Absolute and Unqualified

Example:

2. Acceptance Must Be in a Usual or Prescribed Manner

There are two situations here:

a) Usual and Reasonable Manner

b) Prescribed Manner

Example:

Conclusion

Section 7 of the Indian Contract Act ensures that there is no confusion or misunderstanding at the time of acceptance of an offer. It demands that:

This section protects both parties by making sure that contracts are made with proper understanding and consent.