Question:
Under the Indian Contract Act, 1872, a price catalogue is considered to be:
Under the Indian Contract Act, 1872, a price catalogue is considered to be:
Show Hint
Always remember:
$$
\text{Price Catalogue / Shop Display}
\longrightarrow
\text{Invitation to Offer}
$$
$$
\text{Customer Places Order}
\longrightarrow
\text{Offer}
$$
$$
\text{Seller Accepts Order}
\longrightarrow
\text{Contract Formed}
$$
Updated On: Jun 5, 2026
- Offer
- Proposal
- Invitation to acceptance
- Invitation to offer
Show Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Concept:
The formation of a valid contract requires a distinction between an offer and an invitation to offer (invitation to treat). An offer creates legal obligations upon acceptance, whereas an invitation to offer merely invites others to make offers.
Step 1: Analyze Section 2(a) of the Indian Contract Act, 1872. A proposal is made when a person signifies willingness to do or abstain from doing something with a view to obtaining the assent of another.
Step 2: Evaluate commercial displays. Price catalogues, advertisements, shop displays, and menus generally do not constitute offers. They merely invite prospective customers to make offers to purchase.
Step 3: Consider the legal implications. If a price catalogue were considered a binding offer, sellers would be legally bound to fulfill every order irrespective of stock availability. Therefore, the customer makes the actual offer when placing an order, and the seller accepts or rejects it. Hence, Option (D) is correct.
Step 1: Analyze Section 2(a) of the Indian Contract Act, 1872. A proposal is made when a person signifies willingness to do or abstain from doing something with a view to obtaining the assent of another.
Step 2: Evaluate commercial displays. Price catalogues, advertisements, shop displays, and menus generally do not constitute offers. They merely invite prospective customers to make offers to purchase.
Step 3: Consider the legal implications. If a price catalogue were considered a binding offer, sellers would be legally bound to fulfill every order irrespective of stock availability. Therefore, the customer makes the actual offer when placing an order, and the seller accepts or rejects it. Hence, Option (D) is correct.
Was this answer helpful?
0
0
Top TS LAWCET Legal Studies Questions
- Which international agreement aims to combat climate change by limiting global warming to well below 2 degrees Celsius above pre-industrial levels?
- Defense by an accused person of having been elsewhere at the time an alleged offense was committed is called as
- Which type of tort involves causing harm to someone's reputation through spoken words?
- Which landmark case dealt with the issue of "marriage after conversion" and declared it illegal under Personal Law?
- Intellectual Property law protects an invention by grant of .........
View More Questions
Top TS LAWCET Contract Law Questions
- The legal term "caveat emptor" means ..........
- A company "Z", agrees to pay all the employees Rs.10,000/- salary per month. The employer failed to pay the salary because they wanted to go for lay off. Both the employer and employee want to settle the matter amicably by appointing a person and place of their choice. This process is known as ..........
- A contract is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others. A contract is an agreement creating and defining obligations between the parties. The Indian Contract Act, 1872 lays down general principles relat- ing to formation and enforceability of contracts; rules governing the provisions of an agreement and offer; the various types of contracts including those of indemnity and guarantee, bailment and pledge and agency. It also contains provisions pertaining to breach of a contract. The Indian Contract Act has defined ”Contract” in Section 2(h) as ”an agreement enforceable by law”. This definition indicates that a contract essentially consists of two distinct parts. First, there must be an agreement. Secondly, such an agreement must be enforceable by law. An agreement gives birth to a contract. As per Section 2(e) of the Indian Contract Act, every promise and every set of promises, forming the consideration for each other, is an agreement. Agree- ments relating to social matters in which the idea of bargain is absent and there is no intention to create legal relations are not contracts. To form a valid contract there must be: an agreement based on the genuine consent of the parties, supported by a lawful consideration made for a lawful object, and between the competent parties. One of the early steps in the formation of a contract lies in arriving at an agreement between the contracting parties by means of an offer and acceptance. When one party (the offeror) makes a definite proposal to another party (the offeree) and the offeree accepts it in its entirety and without any qualification, there is a meeting of the minds of the parties and a contract comes into being, assuming that all other ele- ments are also present.
- ___ is a transfer of ownership in a property, for a price that is partly paid and partly due.
- A borrows Rs. 20,000/- from B and keeps his golden watch as security for the payment of the debt. It is called as ___.
View More Questions
Top TS LAWCET Questions
- Which international agreement aims to combat climate change by limiting global warming to well below 2 degrees Celsius above pre-industrial levels?
- Defense by an accused person of having been elsewhere at the time an alleged offense was committed is called as
- Which type of tort involves causing harm to someone's reputation through spoken words?
- Which landmark case dealt with the issue of "marriage after conversion" and declared it illegal under Personal Law?
- Intellectual Property law protects an invention by grant of .........
View More Questions