Question 1 : Discuss the law relating to communication of offer, acceptance and revocation under Section 4 and Section 5 of the Indian Contract Act.
Answer :
Communication of Offer and Acceptance
One of the fundamentals of contract law is that an offer cannot be revoked after the offeror has communicated it to the offeree. Thereupon, the offer becomes legally binding on the two parties. So when is the communication complete? Effective communication of the offer and a clear understanding of it is important to avoid misunderstanding between all the parties.
No difficulty shall arise when the parties are communicating face-to-face. This is primarily because communication takes place in no time. The offer and its acceptance is communicated on the spot, creating no confusion. However, in practically, the situation is quite complex. The communication takes place via letters, emails etc. So, for these cases, timeline of the communication is important.
Communication of Offer
Section 4 of Indian Contract Act 1872, states that the communication of the offer is complete only when it comes to the knowledge of the person it has been made to. So when the offeree (in case of a specific offer) or any member of the public (in case of a general offer) becomes aware of the offer, the communication of the offer is said to be complete.
Revocation of Acceptance
Section 5 also states that acceptance can be revoked until the communication of the acceptance is completed against the acceptor. No revocation of acceptance can happen after such a date.
A buys from Y a painting which both believe to be the work of an old master and for which A pays a high price. The painting turns out to be only a modern copy. The contract will be valid because both were not believe to cheat defeat the law but when Y know that it was not the real painting then it will not make any contract from it , because then the law defeat the nature by when the contract is done by them.
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