Question:

Principle: An agreement may be entered into orally, in writing, or by conduct.
Facts: ‘A’ went to the shop of ‘B’ and picked a tooth brush and gave a cheque of Rupees twenty to B and left the shop.
This question consists of legal principle(s) (hereinafter referred to as ‘principle’) and facts. Such proposition may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this section. Principles have to be applied to the given facts to arrive at the most reasonable conclusion. Only one of the alternatives, i.e., (A), (B), (C), or (D) is the most reasonable conclusion. In other words, in answering the following questions, you must not rely on any principle except the principles that are given herein below for every question. Further you must not assume any facts other than those stated in the question. The objective of this section is to test your ability in legal aptitude, study of law, research aptitude and problem solving ability even if the 'most reasonable conclusion‘ arrived at may be absurd or unacceptable for any other reason.

Updated On: Jul 15, 2026
  • A entered into an agreement with B.
  • A did not enter into an agreement with B.
  • Payment of tooth brush cannot be made through a cheque.
  • A should have carried a currency note of Rupees twenty to make the payment.
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The Correct Option is A

Approach Solution - 1

The correct option is (A): A entered into an agreement with B.
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Approach Solution -2

The principle says an agreement may be formed orally, in writing, or through conduct, meaning actions alone can create a binding agreement without any words being exchanged. A picked up a toothbrush from B's shop, handed over a cheque for Rs. 20, and left. Let's check each option against this principle.

  1. A entered into an agreement with B: A's conduct of taking the toothbrush and paying for it with a cheque shows both parties' conduct completing a transaction, exactly the kind of agreement by conduct the principle describes.
  2. A did not enter into an agreement with B: This would only be true if A's actions showed no intention to transact, but picking up an item and paying for it is a clear act of forming an agreement through conduct, so this option goes against the principle.
  3. Payment of toothbrush cannot be made through a cheque: The principle does not restrict the mode of payment at all, it only says an agreement can form through conduct, so this option introduces a rule that is not part of the given principle.
  4. A should have carried a currency note of Rupees twenty to make the payment: Again, the principle says nothing about the specific mode of payment being restricted to cash, so this conclusion cannot be drawn from the principle as stated.

Since the principle allows an agreement to form purely through conduct, A picking up the toothbrush and paying by cheque is enough to show an agreement was formed with B.

Therefore, the correct answer is A entered into an agreement with B.

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Approach Solution -3

The principle can be read as a conditional rule: if the parties' words or actions show them arriving at a common transaction, whether through speech, writing, or conduct, an agreement exists, and nothing in that rule ties the validity of the agreement to how payment is made. Applying that rule to the facts, A picked up a toothbrush, handed B a cheque for its price, and left, while B permitted this exchange to occur. Let's test each option against this rule.

  1. A entered into an agreement with B: The rule only requires conduct showing mutual assent to a transaction. A's act of selecting the toothbrush and tendering payment, combined with B's act of allowing the exchange to go through, is precisely the kind of conduct the rule treats as sufficient to form an agreement. This option satisfies the rule fully.
  2. A did not enter into an agreement with B: For this to hold, the rule's condition, conduct showing mutual assent, would have to be absent from the facts. Since both parties' actions clearly show a completed exchange, the condition is met, so this option contradicts the rule rather than following from it.
  3. Payment of tooth brush cannot be made through a cheque: The rule specifies three modes by which an agreement itself may be formed, orally, in writing, or by conduct. It says nothing about which instruments of payment, cash, cheque, or otherwise, are permitted once an agreement is formed. This option imports a restriction that the rule never states.
  4. A should have carried a currency note of Rupees twenty to make the payment: Like the option above, this treats a particular payment instrument as mandatory, but the rule's conditions concern only how the agreement itself comes into being, not the form of payment used to perform it. This conclusion cannot be derived from the rule as worded.

Only the first option follows directly from applying the rule's condition, conduct showing mutual assent, to the facts as given, since the exchange itself satisfies that condition regardless of the payment instrument used.

Therefore, the correct answer is A entered into an agreement with B.

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