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Communication of Offer,

 Acceptance and Revocation sec 4

& 51. Communication of an offer: complete when it

comes to the knowledge of the person towhom it is made, i-e, when the letter containing

the offer reaches the offeree.2. Communication of an acceptance: has two

aspects. Complete (a) as against the proposer,when it is put in a course of transmission to

him/out of the power of the acceptor, complete(b) as against the acceptor, when it comes tothe knowledge of proposer/letter of acceptanceis received by proposer.

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Example:

� (i) A proposes, by letter, to sell a house to B for Rs 80,000. the letter is posted, on 6th instant.The letter reaches B on 8th instant. the

communication of the offer is complete when B,the offeree receives the letter i.e., on 8th.

� (ii) B accepts A¶s proposal, (in above case) by aletter sent by post on 9th instant. The letter 

reaches A on 11th

instant. Communication of acceptance is complete; as against A, when theletter is posted, i.e. on 9th and as against B,when the letter is received by A, i-e, on 11th.

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Communication of Revocation

3. Communication of a revocation:

complete (a) as against the person whomakes it, when it is put into the course of 

transmission to the person to whom it is

made/out of the power of the person

revoking.

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Time during which an offer or 

acceptance can be revoked. Sec 51. ³ A proposal may be revoked at any time

before the communication of its

acceptance is complete as against theproposer, but not afterwards.

2. An acceptance may be revoked at any

time before the communication of the

acceptance is complete as against the

acceptor but not afterwards.

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Effect of delay or loss of letter in

postal transit.1. Offeror is bound by the acceptance the

moment, the letter of acceptance is posted,

although the letter is delayed or wholly lost

through an accident of the post and the letter never in fact reaches him.

2. As the acceptor is concerned, he is not bound

by the letter of acceptance till it reaches the

offeror. Until letter of acceptance reaches the

offeror, contract remains void able at option of 

the acceptor.

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 Accidental formation of contract

� If both the ³letter of acceptance´ and

³telegram of revocation of acceptance´ aredelivered to the offeror at the same time.

In such a situation, the formation of 

contract will depend on a matter of 

chance.

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Contracts over the Telephone

1. The rule which applies to contracts negotiated

orally by the parties in the physical presence of 

each other, the contract is complete only when

the acceptance is received by the offeror alsoapplies to contracts made over the telephone.

1. If the acceptance is not in fact communicatedto the offeror because the telephone goes

dead, there will be no contract.