lsquo A rsquo proposes by letter to sell a house to lsquo B rsquo at a certain price The communicat...........

Indian Contract Act (ICA)1872 Formation of Contract

‘A’ proposes, by letter, to sell a house to ‘B’ at a certain price. The communication of proposal is complete when –

‘A’ puts letter in letter-box

‘B’ receives the letter

‘B’ puts reply in letter-box

‘A’ receives reply of ‘B’

Section 4 of Indian Contract Act says that the communication of a proposal is complete

when it comes to the knowledge of the person to whom it is made. Refer section 4

illustration (a) of bare act of Indian Contract Act.

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