As per the Indian Contract Act, 1872, an acceptance must be absolute and un- qualified. What is the legal effect if an offeree’s response to a proposal introduces 38 a new term ?
Explanation & Strategy
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Under Section 7 of the Indian Contract Act, acceptance must be absolute and unqualified. If the acceptor introduces a new term or condition, it does NOT constitute valid acceptance — instead, it operates as a COUNTER-PROPOSAL, which destroys the original offer entirely. The original proposer is then free to accept or reject this counter-proposal.