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Get Answers to all your Questions
Read the passage given below to answer the question that follow.
Communication is the very essence of any agreement which later becomes a contract; it signifies our willingness, be it in terms of an offer or acceptance. Communication also plays a vital role in the revocation of an offer or acceptance. Offer is the building block of any contract which is complemented by acceptance, due consideration, consensus ad idem, intention, etc.; all these things are incomplete without proper communication and even if the communication of one of the things is not absolute then the agreement will be deemed to be invalid on the grounds of uncertainty.
If any of these things are not done in the proper manner as stipulated by ICA, 1872 then it can lead to legal consequences. Once the communication of offer and acceptance is done, it becomes an agreement, but before that, the parties to the contract also have an option known as revocation of offer which plays an essential role in determining the outcome of offer or acceptance. Knowledge of a proposal is a must, the proposal must be communicated or the acceptor should have the knowledge of the proposal in order to accept. Communication of offer by rendering services- it is an implied offer by rendering the services. But it has been declared to be not acceptable as an offer cannot be accepted in ignorance; it should be communicated to the person to whom it is made.
Without the communication of acceptance to the proposer, the offer cannot be accepted. The acceptance must be communicated to the proposer and not to any third party. “Section 4, Indian Contract Act, 1872- the communication of acceptance is complete- as against the proposer when it is put in course of transmission to him so as to be out of the power of acceptor; as against the acceptor, when it comes to the knowledge of the proposer.”
Question - Varun who was the captain of the ship also undertook the work of a crew member too. But, the shipping company was not aware of it. Later, Varun claimed the salary of a crew member too which the ship company declined.
There was a contractual agreement
Without communication of the offer, the offer can subsist
This does not amount to a contract because there was no communication of an offer and hence no acceptance and agreement.
Contract subsists as the transaction is an implied contract
Answers (1)
In the case of Taylor v Laird, the Court held that there was no contractual agreement because there was no communication of an offer. Without communication, there can be no offer. Resultantly there can be no acceptance and agreement. In implied contracts also there must be a meeting of minds which is missing here.
