X sends a letter to Y proposing to sell his house to Y for a certain price. When is the communication of the proposal completed?

Question: X sends a letter to Y proposing to sell his house to Y for a certain price. When is the communication of the proposal completed? [DJS 2008]

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Answer

Section 2(a) defines a proposal as “when one person signifies to another his willingness to do or abstain from doing anything, with a view of obtaining the assent of that other to such act or abstinence, he is said to make a proposal.”

As per the definition, a valid proposal has two main parts.

1. An expression of the offeror’s willingness to do or abstain from doing something and
2. It is made with a view to obtaining the assent of the offeree to the proposed act or abstinence.

While making a contract, it is essential that the offer should be communicated to the other party. A proposal is complete when it is communicated. (Section 3)

Section 4 provides that the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

Thus, in the present case at hand, when X sends a letter to Y proposing to sell his house to Y for a certain price. The communication of the proposal gets completed when it comes to the knowledge of Y i.e. when Y receives the letter of offer.

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Law of Contract Mains Questions Series: Important Questions for Judiciary, APO & University Exams

1. Law of Contract Mains Questions Series Part-I
2. Law of Contract Mains Questions Series Part-II
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