Answer & Solution
Answer: Option A
Solution:
In the context of the
Indian Contract Act, when a proposal (offer) is accepted subject to certain conditions, the legal implications are as follows:
Option
A is correct:
A. The Contract is valid and conditions are binding
When a proposal is accepted with conditions, it forms a valid contract, and the conditions become an integral part of that contract. Both parties are legally bound to fulfill the terms and conditions agreed upon at the time of acceptance.
Options
B,
C, and
D are incorrect:
B. The contract is voidable - A contract is considered voidable when one party has the option to either enforce or reject the contract due to certain specific circumstances or deficiencies in the agreement. However, the scenario in the question does not imply voidability.
C. The contract is valid but conditions are not binding - As explained earlier, the conditions are binding on both parties, making this option incorrect.
D. The contract is not constituted at all - The acceptance of the proposal subject to conditions constitutes a valid contract, so this option is not applicable.
Therefore, the correct answer is:
A. The Contract is valid and conditions are binding
