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  • 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

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 - Mani and Ranjan are dairy farmers. Mani is also an expert breeder of cows. Ranjan and Mani talked about a newly imported cow breed from Australia. Later Ranjan sent a letter to Mani proposing to buy this cow of an imported breed but due to workload, Mani couldn’t reply to the letter. Meanwhile, unaware of this Mani’s agent sold the cow to some third person. Ranjan sued Mani.


 

Option: 1

Here Mani is bound by the contractual obligation and upon breach he must compensate Ranjan


Option: 2

   Mani is not liable to pay any compensation

 


Option: 3

Mani is not liable because it was his agent’s fault

 


Option: 4

Mani is liable even though it is his agent’s fault

 


Answers (1)

best_answer

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. In Felthouse v Bindley, the court held that the acceptance of the offer was never communicated. The court observed in this case that silence does not amount to acceptance and acceptance needs to be communicated. Mere mental assent is insufficient in nature.

 

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