An illustration of communication under the Indian Contract Act, 1872 can be seen in the context of offer and acceptance, as outlined in Sections 3 to 7 of the Act.
Illustration:
A (Offeror) writes a letter to B (Offeree) on March 1st, offering to sell his house for ₹50 lakh.
- A posts the letter on March 1st.
- B receives the letter on March 3rd.
- B accepts the offer and posts his acceptance on March 4th.
- A receives the letter on March 6th.
Legal Analysis
- Communication of Offer (Section 4):
- The offer is complete when B receives A’s letter on March 3rd.
- Communication of Acceptance (Section 4):
- The acceptance by B is complete as against A when B posts the letter on March 4th (as per the “postal rule” in contract law).
- As against B, the acceptance is complete only when A receives it on March 6th.
Key Takeaway
- An offer is complete when communicated to the offeree.
- Acceptance is complete as against the offeror when it is posted (if done via post).
- For the offeree, acceptance is complete only when the offeror receives it.
Let me clarify the concept of communication of acceptance under the Indian Contract Act, 1872 using simpler terms:
Key Rule (Section 4 of ICA, 1872)
- For the Offeror (A) → Acceptance is complete when the letter is posted by the offeree (B).
- For the Offeree (B) → Acceptance is complete when the letter reaches the offeror (A).
Illustration
- March 1 → A (offeror) writes an offer letter to B.
- March 3 → B receives the offer.
- March 4 → B posts a letter accepting the offer.
- March 6 → A receives the acceptance letter.
How Acceptance Works:
✅ As against A (Offeror) → The acceptance is complete on March 4th (the moment B posts the letter).
✅ As against B (Offeree) → The acceptance is complete on March 6th (when A receives the letter).
Why This Rule?
- This is known as the “Postal Rule” or “Mailbox Rule”, which protects the offeree.
- Even if the acceptance letter is delayed or lost, the contract is still valid once posted.
Here are some examples of how an offer is communicated to the offeree under the Indian Contract Act, 1872:
1. Offer by Letter (Written Communication)
📌 Example:
A writes a letter to B on March 1st, offering to sell his bike for ₹50,000. B receives the letter on March 3rd.
✔️ Legal Principle: The offer is communicated when B receives the letter on March 3rd (Section 4, ICA 1872).
2. Offer by Email (Electronic Communication)
📌 Example:
X sends an email to Y on April 10th offering to lease office space for ₹1,00,000 per month. Y opens and reads the email on April 11th.
✔️ Legal Principle: The offer is communicated when Y reads the email on April 11th.
3. Verbal Offer (Oral Communication)
📌 Example:
A meets B at a restaurant and says, “I offer to sell my laptop to you for ₹40,000.”
✔️ Legal Principle: The offer is communicated immediately when A speaks to B.
4. Offer by Conduct (Implied Offer)
📌 Example:
A taxi driver stops near a passenger and gestures for them to enter. The passenger sits in the taxi, implying acceptance of the ride.
✔️ Legal Principle: The act of stopping and gesturing is an implied communication of the offer.
5. General Offer (Offer to the Public)
📌 Example:
A company advertises, “₹5,000 reward for anyone who finds and returns our lost pet.”
✔️ Legal Principle: The offer is communicated to the public through the advertisement. Anyone who fulfills the condition accepts the offer.
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