Acceptance

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• Telephone or telex:
• The contract is complete only when the acceptance is received
(clearly heard and understood) by the offeror
• A contract is deemed to be made at the place where acceptance is
received or heard
• Case law: Bhagwandas kedia v. Girdharilal & Co. AIR 1966 SC 543
• Inn case of acceptance by post, the contract is concluded when the
letter of acceptance is posted
Section 6- revocation
• The contract Act gives both the proposer and acceptor the option of
revoking their communication, before a complete contract comes in
to existence
• Notice of revocation of offer
• Lapse of time
• By failure to fulfill a condition precedent
• By death or insanity of offeror
When is communication complete
• Communication of offer: section 4
• The communication of an offer is complete when it comes to the
knowledge of the person to whom it is made
• Eg: ‘A’ proposes by a letter, to sell his house to ‘B’ at a certain price.
The letter is posted on 10th July. It reaches ‘B’ on 12th July
• The communication of offer is compete when ‘B’ receives the letter
• Communication of acceptance:
• The communication of an acceptance is complete-
• As against the proposer when it is put into a course of transmission to
him, so as to be out of the power of the acceptor
• As against the acceptor when it comes to the knowledge of the
proposer
• Eg: ‘B’ accepts A’s proposal by a letter sent by post on 13th July. The
letter reaches A on 15th July. The communication of acceptance is
complete, as against A, when the letter is posted and as against B when
the letter is received by A
Communication of revocation
• Means ‘taking back’ or ‘withdrawal’
• Is complete as against the person who makes it, when it is put in to a
course of transmission to the person to whom it is made, so as to be out
of the power of the person who makes it;
• As against the person to whom it is made, when it comes to his knowledge
• Eg: A proposes, by a letter, to sell a house to B at certain price. The letter is
posted on 15th May. It reaches B on 19th May. A revokes his offer by
telegram on 18th May, the telegram reaches B on 20th May. The revocation
is complete as against A when the telegram is dispatched, i.e., on 18, it is
complete as against B when he receive it on 20th .