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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 - Mr. Gulati’s son was absconded so he sent his servants to different places to search for his son. Meanwhile, the search was going on, Mr. Gulati announced the award for whosoever will find his son. Raju, one of his servants unaware of the award announced found the son of Mr. Gulati. Raju claimed the prize money. Mr. Gulati refused to give him any money. Here-


 

 

Option: 1

 Raju can sue Mr. Gulati for breach of contract


Option: 2

Raju is entitled to the award money as he found the son of defendant

 


Option: 3

Raju cannot claim any award as he is the servant of Mr. Gulati and was merely doing his job

 


Option: 4

Raju cannot claim any award because he did not know about the award

 


Answers (1)

best_answer

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. In Lalman Shukla v Gauri Datt's case, this has been reiterated. 

 

 

Posted by

avinash.dongre

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