1.Offer lapses by the death of the offeree before acceptance.

Answer : This statement is true. An offeree’s death before accepting the offer puts an end to the
offer and even his heirs cannot accept the offer for him/her. This is an established rule because an
offer can be accepted only by the offeree and not by any other person because the offeror made the
offer only to the offeree.

According to the section 6(d) of the Indian Contract Act, A proposal is revoked, by the death or
insanity of the proposer, if the fact of his death or insanity comes to the knowledge of the acceptor
before acceptance.

However, an offeree’s death or insanity before accepting the offer puts an end to the offer and his
heirs cannot accept for him

Case example: Reynolds vs Atherton

Citations: (1922) 66 Sol Jo 404; (1922) 127 LT 189

2.Silence can be provided as a mode of acceptance.

Answer: This statement is false. The general rule is that silence cannot amount to acceptance. The
rationale behind this is based on the idea that acceptance must take some form of objective
manifestation of the intention of the offeree (i.e. the party to which an offer has been made) to
accept the terms of the contract. Such intention is usually best expressed though some form of
positive action. This is to ensure that no one can enforce a contract upon an unwilling party.

According to the section 7(2) of the Indian Contract Act, In order to convert a proposal into a
promise, the acceptance must be expressed in some usual and reasonable manner, unless the
proposal prescribes the manner in which it is to be accepted. If the proposal prescribes a way it is to
be accepted, and the acceptance is not made in such manner, the proposer may, within a reasonable
time after the acceptance is communicated to him, insist that his proposal shall be accepted in the
prescribed manner, and not otherwise; but if he fails to do so, he accepts the acceptance.

Silence cannot be considered a usual or reasonable manner in legal parlance as it doesn’t explicitly
state the rejection or acceptance of an offer. If the offeree fails to respond to an offer made to him,
his silence cannot be confused with acceptance.

3.An acceptance conveyed with changes in terms of the offer is a valid acceptance.

Answer: When an acceptance is conveyed with changes in terms of the offer (original offer), it is
called a counter – offer. When a counteroffer is made, there is a rejection of the original offer and a
new offer is made that needs acceptance by the original promisor before a contract can be made.

Hence, an acceptance conveyed with changes in terms of the offer isn’t a valid acceptance.

4.An offer conveyed only to a specific person is a valid offer.

Answer: This statement is wrong. There are two types of offers: general and specific.

An offer made to a definite person or persons is known as specific offers. Such offers can be
accepted only by such person or persons.
An offer made to the world at large is known as a general offer. Such offers can be accepted by
anyone, but the contract is not entered into with the whole world. It is made only with person who
comes forward & performs the condition of the proposal.

Both general and specific offers are valid offers. Hence the statement, “An offer conveyed only to a
specific person is a valid offer” is wrong.

5.An offer or acceptance can be rejected at any time by both the parties.

Answer: The above statement is false. Only under circumstances can an offer or acceptance be
rejected by any of the party.

According to the section 5 of the Indian Contract Act, a proposal may be revoked at any time before
the communication of its acceptance is complete as against the proposer, but not afterwards.

An acceptance may be revoked at any time before the communication of the acceptance is complete
as against the acceptor, but not afterwards.