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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 - Manish offered to sell the wood to Harsh via letter, but the letter has the wrong address on it which caused the delay. The letter stated acceptance before 10 March but the letter reached Harsh on 9th March and he posted the letter of acceptance on the same day. This also led to a delay in the letter of acceptance and the same arrived on March 13th at the defendant’s place. But the defendant had already sold the wood to some other third party on 12th March.


 

Option: 1

No contract arise as Harsh’s letter arrived after the stipulated time


Option: 2

The proposer is bound here

 


Option: 3

Manish is bound by the offer he made because it is his fault that the letter had the wrong address on it

 


Option: 4

The proposer is not bound here


Answers (1)

best_answer

In the case of Adams v Lindsell, the Court held the suit in favour of the plaintiff stating that the acceptance was complete as against the offeror at the time when the letter was put to post and therefore there existed a contract between the plaintiff and the defendant. Selling wood to a third party is a breach of that contract. This is a classic example of postal rule.

 

Posted by

Anam Khan

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