COMMUNICATION OF OFFER AND ACCEPTANCE

COMMUNICATION OF OFFER AND ACCEPTANCE

• The importance of ‘ouer’ and ‘acceptance’ in giving euect to a valid contract was explained in the previous paragraphs. One important common requirement for both ‘ouer’ and ‘acceptance’ is their euective communication. Euective and proper communication prevents avoidable revocation and misunderstanding between parties. 
• When the contracting parties are face-to-face, there is no problem of communication because there is instantaneous communication of ouer and acceptance. In such a case the question of revocation does not arise since the ouer and its acceptance are made instantly. 
• The difficulty arises when the contracting parties are at a distance from one another and they utilise the services of the post oflce or telephone or email (internet). In such cases, it is very much relevant for us to know the exact time when the offer or acceptance is made or complete.
• The Indian Contract Act,1872 gives a lot of importance to “time” element in deciding when the offer and acceptance is complete.