Multiple choice

Directions: Examine the two statements and give the correct answer.

Assertion (A): A proposal, when accepted, results in an agreement. Reason (R): It is only after the acceptance of the proposal that a contract between the two parties can arise.

  1. Both (A) and (R) are true and (R) is the correct explanation of (A).

  2. Both (A) and (R) are true, but (R) is not a correct explanation of (A).

  3. (A) is true, but (R) is false.

  4. (A) is false, but (R) is true.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Option (1) is correct: As per the Indian Contract Act, a proposal, when accepted, results in an agreement or if it is enforceable by law, it becomes contract.

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