Section 4: Communication when complete

Leading cases

• Bhagwandas Goverdhandas Kedia v. Girdharilal Parshottamdas and Co. (1965)By majority, the Court held that a contract made by telephone is complete where the acceptance is heard by the offeror, so the Ahmedabad court, where acceptance was received, had jurisdiction over the suit.

Questions on this section

4 questions in 7 of our papers cite Section 4. Try these from the free papers:

1. 1. Assertion (A): Where A writes to B offering to sell his horse for Rs. 50,000 and B, without knowing of A's letter, writes to A offering to buy the same horse for Rs. 50,000, no contract arises merely because the two letters cross in the post. Reason (R): Under Section 4 of the Indian Contract Act, 1872, the communication of a proposal is complete as soon as it is put in a course of transmission to the person to whom it is made.

   A.Both A and R are true, but R is not the correct explanation of AB.A is false, but R is trueC.A is true, but R is falseD.Both A and R are true, and R is the correct explanation of A
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2. 2. On 1 June, A posts to B a proposal to sell his car for Rs. 3 lakh, which B receives on 3 June. On 4 June, A posts a letter revoking the proposal. On 5 June, B posts a letter of acceptance. A's letter of revocation reaches B on 6 June, and B's acceptance reaches A on 7 June. Under Sections 4 and 5 of the Indian Contract Act, 1872, what is the legal position?

   A.No contract is concluded, since a posted revocation takes effect on the date of postingB.A contract is concluded, since the revocation reached B only after B posted his acceptanceC.The revocation is effective, since it reached B before the acceptance reached AD.The revocation is effective, since A posted it before B had posted his letter of acceptance
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