Principle Proposal communication Acceptance communication Consideration Contract The communicat...........

Indian Contract Act (ICA)1872 Consideration of Contract

Principle: Proposal (communication) + Acceptance (communication) + Consideration = Contract. The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

Facts: X’s nephew absconded from home. He sent his servant in search of the boy.

After the servant had left, X by handbills offered to pay Rs. 501 to anybody finding his nephew. The servant came to know of this offer only after he had already traced the missing child. He, therefore, brought an action to recover the reward.

His action would fail because he was not aware of the offer

His action would not fail because it was a general offer

The fact that he was not aware of the offer does not make any difference and hence it was a valid contract. It is a mere formality.

None of the above

Explanation:

The servant did not know about the offer when he traced the missing child.
Hence, his action would fail.
Communication of the offer is not complete as knowledge of the offeree is required against the principle.