Question

According to the Indian Contract Act, 1872, when is the communication of an acceptance complete against the proposer?

• A. When the acceptor prepares the letter of acceptance
• B. When it is dispatched beyond the control of the acceptor
• C. When it is delivered to the office of the proposer party
• D. When the proposer acknowledges receipt in his records

Hint:

Section 4: Acceptance binds proposer on dispatch; binds acceptor on receipt.

Answer 1

The Correct Option is B

Step 1: Apply Section 4 of the Contract Act.
Communication of acceptance is complete against the proposer when the acceptance is put into a course of transmission, beyond the acceptor's control.
Step 2: Meaning.
Once the acceptor posts, emails, or sends the acceptance such that he cannot revoke it, the proposer becomes bound.
Step 3: Conclusion.
Thus, communication is complete when acceptance is dispatched beyond the acceptor’s control.