Question

When is the communication of a proposal said to be complete?

• A. It is complete when it is put into the post box and out of the control of the person making it.
• B. It is complete when it is written down.
• C. It is complete when it enters the public domain.
• D. It is complete when it comes to the knowledge of the person to whom it is made.

Hint:

For a proposal, the rule is subjective (knowledge of the recipient).
For an acceptance sent by post, the rule is split: it is complete against the proposer when posted, and against the acceptor when received.

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question asks about the legal rule governing when the communication of a proposal (offer) is deemed complete under the Indian Contract Act, 1872.

Step 2: Key Legal Principles and Approach:
The rules regarding the communication of proposals, acceptances, and revocations are laid down in Section 4 of the Indian Contract Act, 1872.

Step 3: Detailed Explanation:

• Statutory Provision: Section 4 (Paragraph 1) of the Act states: "The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made."

• Implications of the Rule: A proposal has no legal effect until the offeree actually receives and is made aware of its contents.

• For example, if A writes a letter offering to sell a car to B, and posts it on Monday, but B receives and reads the letter only on Wednesday, the communication of the proposal is complete on Wednesday.

• Analysis of Distractors: Option A describes the completion of the communication of an acceptance as against the proposer (often known as the postal rule of acceptance), but does not apply to the proposal itself.

• Mere writing down (Option B) or entering the public domain (Option C) does not satisfy the requirement of coming to the specific knowledge of the offeree.

• Therefore, Option (D) is the correct statutory rule.

Step 4: Final Answer:
The communication of a proposal is complete only when it comes to the knowledge of the person to whom it is made, making Option (D) the correct answer.