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 Communication Of Offer, Acceptance And Revocation

 

According to section 4, “The communication of an offer is complete when it comes to the knowledge of the person to whom it is made.”
 

The communication of acceptance is complete:

As against the proposer, when it is put into a course of transmission to him, so as be out of the power of the acceptor;

As against the acceptor, when it comes to the knowledge of the proposer.

 

Completion Of Communication
Offer: When the offeree comes to know about the offer
Acceptance against offeror: When the letter of acceptance is posted and is out of the power of acceptor to withdraw it.
Against offeree: When the letter of acceptance comes to the knowledge of the offeror

 

Communication Of Revocation
According to section 5, “the proposal may be revoked at any time before the communication of its acceptance is complete as against the proposal, 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.
The communication of revocation is complete:
As against the person who makes it, when it is put into the course of transmission to the person to whom it is made, so as to be out of power of the person who makes it.
As against the person to whom it is made when it comes to his knowledge.

 

Time Limit For Revocation
Offer: Till the acceptance against offeror is not complete.
Acceptance: Till the acceptance against offeree is not complete.

 

Completion Of Revocation
Person revoking: When the letter of revocation is posted.
Person to whom revocation is sent: When the letter of revocation reaches him.

 

Loss Of Letter Acceptance In Postal Transit
Acceptance is complete as against the offeror as soon as the letter of acceptance is posted. The contract is complete even if the letter of acceptance is lost during transit. But in order to bind the offeror, it is important that the letter of acceptance is correctly addressed, sufficiently stamped and posted. If it is not correctly addressed, the communication of acceptance is not complete. The offeree, however, remains free to withdraw his acceptance any time since the communication of acceptance is not complete against him as the letter of acceptance has been lost in post.

 

Contract Over Telephone
Contracts made over telephone are perfectly valid. There is an instantaneous communication of offer, acceptance and rejection. There may be counter offers also. Where contract is entered through electronic device it is the duty to acceptor to make sure that his acceptance is received heard and understood by offeror otherwise there is no binding contract.





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