General Rules as to communication of acceptance
The general rules relating to communication of acceptance are the following:
- In case of acceptance by post: Where the acceptance is given by post, the communication of the acceptance is complete as against the proposer, when the letter of the acceptance is posted. Thus, a mere posting of the letter of the acceptance is sufficient to conclude the contract with respect to offeror even if the letter is lost in transit.
Note: The letter posted must be properly addressed and stamped.
- Acceptance by Telephones, Telex or Fax: If communication of the acceptance is made by telephone, telex and fax machines, it is completed when the acceptance is received by the offeror. The contract is concluded as soon as the offeror receives or hears the acceptance.
Note: The offeree must make sure that his acceptance is properly received i.e. heard and understood by the offeror.
- Place of contract:
- In case of acceptance by post, the place where the letter is posted is the place of contract
- In case the acceptance is given by telephone, fax, and telex etc., the contract is made at the place where the acceptance is received by the offeror
- Time of contract:
- In case of acceptance by post, the time of posting the letter of acceptance is the time of contract as regards to the offeror.
- In case, the acceptance is given by telephone, fax, and telex etc., the time of contract is the time when the offeror gets the communication of the acceptance
- Communication of acceptance in case of agent: When the offer has been made through an agent, the communication of the acceptance is completed, when the acceptance is given either to the agent or to the principal. In such a case, if the agent fails to convey the acceptance received from the offeree, the principal is still bound by the acceptance.