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Communication of Offer and Acceptance

An offer and its acceptance have no legal effect unless it is communicated to the other party. The offer and the acceptance can be communicated by word (spoken or written) or by conduct.
  • Communication of offer is completed as soon as it comes to the knowledge of the offeree.
  • A communication of acceptance is complete at different times for the offeror and the offeree.
    • For the offeror, the communication of acceptance is complete when it is put in a course of transmission to him. Thus, the offeror becomes bound by the acceptance as soon as letter of acceptance is posted by the offeree.
    • For the offeree, the communication of acceptance is complete when it comes to the knowledge of offeror.
Example

Amar offers to sell his house to Akbar for ₹ 15, 00,000 by a letter dated 25th December. The letter reaches Akbar on 27th December. Akbar accepts the offer by a letter posted on 28th December. This letter of acceptance reaches Amar on 30th December.

  • The communication of offer is completed on 27th December (letter reaches offeree)
  • For Amar (offeror), the communication of acceptance is complete when the letter of acceptance is posted i.e., on 28th December
  • For Akbar (offeree), the communication or acceptance is complete when the letter of acceptance is received by Amar and the contents of the letter come to his knowledge. i.e., on 30th December




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