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Business Environment and Law-Law Of Contract (Indian Contract Act 1872)

Communication Of Offer And Acceptance-Law Of Contract

   Posted On :  07.05.2018 12:07 am

Problem of communication arises when the parties to the contract are not face to face with each other. It arises in the following cases:

Communication Of Offer And Acceptance
 
Problem of communication arises when the parties to the contract are not face to face with each other. It arises in the following cases:
 
(A) Contracts through Telephones: (B) Contracts through Post: Offer and acceptance are generally made through letters and telegrams, Advertisements, notices, circulars, etc., are also used to make an offer. The rules of communication regarding them are as follows:
 
(1) “The communication of a proposal is complete When it comes to the knowledge of the person to whom it is made…” (sec. 4)
(2)  “….The communication of an acceptance is complete
 
  •    as against the proposer, when it is put in a course of transmission to him, so as to be out of the power of acceptor; and
 
  •    as against the acceptor, when it comes to the knowledge of the proposer…” (Sec.4)
 
From the above, it is clear that an offer may be revoked at any time before the acceptance is put in course of transmission to the proposer.

 

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