15 Questions
When is the communication of a proposal deemed to be made?
When the proposer intends to communicate the proposal
When is the communication of an acceptance considered complete as against the proposer?
When it comes to the knowledge of the proposer
As against the acceptor, when is the communication of an acceptance considered complete?
When it is out of the power of the acceptor
When is the communication of a revocation considered complete as against the person who makes it?
When it is put into a course of transmission to the person to whom it is made
When is the communication of a revocation considered complete as against the person to whom it is made?
When it is put into a course of transmission to the person who makes it
In illustration (a), when is the communication of A's proposal considered complete?
When B receives the letter
When is the communication of acceptance considered complete against A?
When the letter of acceptance is received by A
Under what circumstances may a proposal be revoked?
At any time before the communication of its acceptance is received by the proposer
How is a proposal revoked according to the text?
By the communication of notice of revocation by the proposer to the other party
What is required for the acceptance to convert a proposal into a promise?
The acceptance must be absolute and unqualified
Under what circumstances is an acceptance of a proposal implied?
When it is made otherwise than in words
What happens if the proposer prescribes a manner for acceptance but the acceptance is not made in such manner?
The proposer may insist that his proposal shall be accepted in the prescribed manner within a reasonable time
What constitutes an acceptance of a proposal according to the text?
Both performance of conditions and receiving consideration for a reciprocal promise offered with a proposal
When is B's revocation of his acceptance complete?
When B's revocation letter reaches A
Under what circumstances does a proposal lapse?
If no time is prescribed for its acceptance and it takes more than a reasonable time for communication of acceptance
Study Notes
Communication of Proposal and Acceptance
- The communication of a proposal is deemed to be made when it is received by the person to whom it is made.
- The communication of an acceptance is considered complete as against the proposer when it is put into a course of transmission so as to be out of the power of the acceptor.
Completion of Communication
- As against the acceptor, the communication of an acceptance is considered complete when it comes to the knowledge of the proposer.
- The communication of a revocation is considered complete as against the person who makes it when it is put into a course of transmission so as to be out of the power of the person who makes it.
- The communication of a revocation is considered complete as against the person to whom it is made when it is received by that person.
Illustrations and Examples
- In illustration (a), the communication of A's proposal is considered complete when it is received by the person to whom it is made.
- The communication of acceptance is considered complete against A when it is put into a course of transmission so as to be out of the power of the acceptor.
Revocation of Proposal
- A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer.
- A proposal is revoked by expressing the intention to withdraw it.
Acceptance of Proposal
- The acceptance of a proposal must be absolute and unconditional to convert a proposal into a promise.
- An acceptance of a proposal is implied when the offeree fulfills the conditions of the proposal.
- If the proposer prescribes a manner for acceptance, and the acceptance is not made in such manner, it is not valid.
Constituents of Acceptance
- An acceptance of a proposal constitutes a promise when it is absolute and unconditional.
- B's revocation of his acceptance is complete when it is put into a course of transmission so as to be out of the power of B.
Lapse of Proposal
- A proposal lapses when the time fixed for its acceptance has expired, or when the proposer or the offeree dies, or when the proposal is revoked.
Test your understanding of the communication, acceptance, and revocation of proposals according to the Contract Act as taught by CS Naresh Kumar Sinha. This quiz covers the communication of proposals, acceptance of proposals, and revocation of proposals and acceptances.
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