Question

A sent a letter to B stating that he was willing to sell to B, 10 bags of rice at Rs. 20 each. B wrote a letter to A accepting the offer and posted it.

• A. The contract is entered into the moment B posts the letter
• B. The contract is entered into only after A receives and reads the letter
• C. The contract is entered into only after A receives the letter, reads it and then gets back to B
• D. The contract is entered into the moment A makes the offer

Answer 1

The correct option is B The contract is entered into only after A receives and reads the letter

According to Section 4, "The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made." The communication of an acceptance is complete, as against the proposer, when it is put in a course of transmission to him so as to be out of the power of the acceptor; as against the acceptor, when it comes to the knowledge of the proposer. The communication of a revocation is 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, so as to be out of the power of the person who makes it; as against the person to whom it is made, when it comes to his knowledge.