How can an offer be made, revoked or accepted? What rules apply when an offer is made through post or over the telephone? Discuss.
Section 3 of the Indian Contract Act, 1872, deals with the provisions of communication of offer and its acceptance and revocation. According to the provisions of Indian Contract Act, 1872, an offer is an initial step for making a lawful and valid contract.
Primarily, an offer is a communication of willingness by one person to another person. If one person wants to enter into a contract with another person, then the former person will communicate his willingness to another person with a view to take his assent and if the latter person accepts the offer, then only a contract is concluded between the parties.
According to section 3 of the Indian Contract Act, 1872, the communication of an offer can be made either expressly or impliedly. If a person makes an offer verbally or through post, then it is considered that he has made an offer expressly whereas if he makes an offer by doing an act or by omitting to do an act or in such manner which shows his willingness, then in such a case, it is considered that he has made an offer impliedly.
Moreover, according to section 3 of the Indian Contract Act, 1872, if a person wants to accept the offer or if a person wants to revoke the offer, then they can communicate the acceptance or revocation in the same manner in which an offer can been communicated by the offeror.
According to the provisions of Indian Contract Act, 1872, if an offer is communicated through phone and the acceptance of an offer is also communicated through phone, then in such a case, the contract is concluded at that time when the acceptance is heard by the offeror.
In case of telephonic conversation, the position is same as in case where parties are in presence of each other whereas if the offer is made through post and it is accepted post, then in such a case, the contract is concluded when the letter of acceptance is put into the course of transmission.
In the leading case of Bhagwan Das Gobardhan Dass vs. Girdharilal Co., the Hon’ble court held that in case of acceptance sent by post, the contract is concluded when the letter of acceptance is posted whereas in case of acceptance by phone, it is deemed to be concluded when offeror hears the acceptance at his end.