Multiple choice

If a proposal has been accepted subject to certain conditions, then

  1. the contract is valid and conditions are binding

  2. the contract is voidable

  3. the contract is valid but conditions are not binding

  4. the contract is not constituted at all
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Option (4) is correct as acceptance of proposal subject to conditions create counter offer and thus there is no contract. Option (1) is incorrect. The voidable contact is the one, which is valid at the option of one of the parties but not at the option of the other party. Option (3) is incorrect as the proposal accepted as such cannot be valid.

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