Government of India
Bare Act As Per The Government of India

Section 8 of Indian Contract Act

8. Acceptance by performing conditions, or receiving consideration.— Performance of the conditions of a proposal, or the acceptance of any consideration for a reciprocal promise which may be offered with a proposal, is an acceptance of the proposal.

MCQs Based on Section 8 of the Indian Contract Act, 1872

Q1. What does Section 8 of the Indian Contract Act, 1872 deal with?

A. Offer and its revocation
B. Acceptance by conduct
C. Communication of acceptance
D. Consideration must be lawful

Correct Answer: B. Acceptance by conduct

Explanation: Section 8 talks about acceptance by performing the conditions of a proposal or receiving consideration, which is also known as acceptance by conduct.

Q2. If a person performs the conditions mentioned in a proposal without communicating acceptance, it is treated as:

A. No acceptance
B. Future contract
C. Acceptance under Section 8
D. Void agreement

Correct Answer: C. Acceptance under Section 8

Explanation: According to Section 8, performance of conditions of the proposal amounts to valid acceptance, even without verbal or written communication.

Q3. Which of the following is an example of acceptance under Section 8?

A. Signing a contract before witnesses
B. Silence after receiving an offer
C. Finding a lost pet after seeing a reward notice
D. Rejecting the offer verbally

Correct Answer: C. Finding a lost pet after seeing a reward notice

Explanation: Performing the act (finding the pet) after seeing the reward notice is acceptance by conduct, which is exactly what Section 8 covers.

Q4. In Carlill v. Carbolic Smoke Ball Co., the court held that:

A. Verbal acceptance is mandatory
B. Advertisement is not a valid offer
C. Acceptance by conduct was valid
D. Contract must be in writing

Correct Answer: C. Acceptance by conduct was valid

Explanation: The court ruled that the woman accepted the offer by performing the condition (using the smoke ball), making the contract binding.

Q5. According to Section 8, when is a proposal considered accepted?

A. When the proposer gives consent
B. When the acceptor performs the conditions or accepts consideration
C. Only when written agreement is signed
D. When both parties meet

Correct Answer: B. When the acceptor performs the conditions or accepts consideration

Explanation: Section 8 clearly states that performance or acceptance of consideration amounts to acceptance.

Q6. Section 8 covers which of the following types of acceptance?

A. Express acceptance only
B. Implied acceptance only
C. Acceptance by performance or receiving benefit
D. None of the above

Correct Answer: C. Acceptance by performance or receiving benefit

Explanation: It specifically refers to acceptance through performance of proposal’s condition or receiving consideration, both forms of implied acceptance.

Q7. If Mr. X offers ₹1,000 to anyone who finds his lost dog, and Mr. Y finds and returns the dog without informing Mr. X beforehand, is there a valid contract?

A. No, because Y didn’t communicate acceptance
B. No, because there was no written agreement
C. Yes, under Section 8
D. Yes, but only if Mr. X signs an agreement

Correct Answer: C. Yes, under Section 8

Explanation: Mr. Y accepted the offer by performing the act (finding and returning the dog), making it a valid acceptance under Section 8.

Q8. Which one of the following is not true about Section 8 of the Indian Contract Act?

A. Acceptance can be through conduct
B. Verbal communication is always necessary
C. Receiving consideration can be treated as acceptance
D. Performing conditions in a proposal is acceptance

Correct Answer: B. Verbal communication is always necessary

Explanation: Section 8 allows acceptance without verbal communication, if the conditions are fulfilled or consideration is accepted.

Section 8: Condition-Based Practice Questions

Question 1

Condition: Section 8 of the Indian Contract Act states that performance of the conditions of a proposal amounts to acceptance.

Question: Does performing an act mentioned in an offer without communicating acceptance form a valid contract under Section 8?

Answer: Yes, under Section 8, if the offeree performs the condition mentioned in the proposal, it is treated as valid acceptance. The law does not always require verbal or written acceptance if the act clearly shows intention to accept.

Example: If A offers ₹1,000 to anyone who returns his lost phone and B returns it, the act of returning the phone is considered acceptance by conduct, even if B never communicated verbally.

Question 2

Condition: Section 8 also says that receiving consideration for a reciprocal promise amounts to acceptance.

Question: Is acceptance of consideration alone enough to form a valid contract under Section 8?

Answer: Yes. If a party receives the benefit or consideration that comes with a proposal, it implies acceptance of the terms, making the contract enforceable.

Example: A offers to buy goods from B for ₹5,000. B accepts the payment and delivers the goods. Even without formal acceptance, this is valid under Section 8.

Question 3

Condition: Section 8 recognises acceptance by conduct rather than express communication.

Question: Is communication of acceptance mandatory under all circumstances?

Answer: No. Section 8 creates an exception. When an offeree acts upon the offer or accepts consideration, the contract is formed even without formal communication.

Example: If X announces a public reward for completing a task, anyone who completes that task has accepted the offer through performance.

Question 4

Condition: Acceptance must match the terms of the offer and the act must be done with knowledge of the offer.

Question: Is a contract formed if the offeree performs the act without knowing about the offer?

Answer: No. Knowledge of the offer is essential. If the person does not know about the offer while performing the act, it is not valid acceptance under Section 8.

Example: If B finds A’s lost dog without knowing about A’s reward offer, B cannot claim the reward, because there was no intention to accept the proposal.

Section 8: Problem-Based Practice Questions

Question 1

Problem: Ravi sees a poster offering ₹2,000 to anyone who helps find the advertiser’s lost dog. Ravi finds and returns the dog but never communicates that he is accepting the offer. Later, the advertiser refuses to pay, saying no acceptance was communicated.

Question: Is Ravi entitled to the reward under Section 8?

Answer: Yes. According to Section 8 of the Indian Contract Act, performance of the condition (returning the lost dog) is treated as acceptance of the proposal. Hence, Ravi is entitled to the reward, even without prior communication of acceptance.

Question 2

Problem: Zoya offers to sell her bicycle to Reema for ₹3,000. Reema pays the amount online and collects the bicycle the same day. She does not send any message or verbal acceptance to Zoya.

Question: Is there a valid contract under Section 8?

Answer: Yes. By paying the price and accepting the bicycle, Reema has accepted the proposal by conduct. Under Section 8, accepting consideration and performing the reciprocal act is valid acceptance. A binding contract exists.

Question 3

Problem: A company launches a scheme: “Get ₹500 cashback if you use our app for 30 days.” Suresh uses the app as per the condition. The company refuses to pay, stating he never communicated his acceptance.

Question: Can Suresh claim the cashback under Section 8?

Answer: Yes. Suresh has performed the condition mentioned in the offer. Under Section 8, this constitutes acceptance by conduct. The company is legally bound to fulfil its promise.

Question 4

Problem: Rina finds and returns a missing USB drive belonging to her teacher. She later finds out a notice was put up promising ₹1,000 for its return. She claims the reward.

Question: Is Rina entitled to the reward under Section 8?

Answer: No. Rina had no knowledge of the offer at the time of performing the act. For acceptance by conduct to be valid under Section 8, the offeree must be aware of the proposal. Therefore, no contract was formed, and she is not entitled to the reward.

Question 5

Problem: Vikram promises ₹10,000 to his neighbour Mohan if Mohan paints his fence. Without replying, Mohan paints the entire fence. Vikram later refuses to pay, saying Mohan never accepted the offer.

Question: Is Mohan entitled to payment under Section 8?

Answer: Yes. Mohan’s performance of the condition (painting the fence) amounts to acceptance by conduct. As per Section 8, Vikram is legally bound to pay ₹10,000.

Final Thoughts

Introduction

For a contract to be valid, one of the most important things is “acceptance of the proposal (offer)”. Generally, we think acceptance must be given by words—either spoken or written. But the law also accepts actions as a valid way of accepting an offer. This is explained under Section 8 of the Indian Contract Act.

Meaning of Acceptance

Acceptance means agreeing to the terms of the proposal. When a person to whom a proposal is made agrees to it, a contract is formed. Usually, acceptance is expressed in words. But sometimes, a person’s actions also show that they have accepted the offer. This is where Section 8 becomes important.

What is Section 8?

Section 8 of the Indian Contract Act says:

This type of acceptance is called “Acceptance by Conduct”.

Legal Effect of Such Acceptance

Detailed Explanation with Example

Example 1:

Mr. A offers a reward of ₹5,000 to anyone who finds and returns his lost dog. Mr. B sees the poster and finds the dog and returns it to Mr. A.

Here, Mr. B did not say anything or give written acceptance. But by doing the act (finding and returning the dog), he accepted the offer.

So, a contract is formed under Section 8.

Example 2:

Mr. C offers to sell his bike to Mr. D for ₹30,000. Mr. D pays ₹30,000 and takes the bike.

Here, Mr. D accepted the offer by giving consideration (money). No need for any formal acceptance in words.

Conclusion

Section 8 of the Indian Contract Act helps in understanding that not only words, but actions also can form a valid contract. If a person does the act mentioned in the offer or takes the benefit offered, the law treats it as acceptance. This is especially useful in situations where formal acceptance is not possible, but the person’s behavior shows agreement. It is an important provision that supports fairness and intention in contract law.