A sends an offer to B by post. B mails his acceptance, but subsequently sends a telegram revoking his acceptance. Is there a valid contract between A and B?
TheSayeed Answered question March 15, 2024
Facts of the Case:
- A sends an offer to B via postal mail.
- B accepts the offer and sends his acceptance letter through postal mail.
- After mailing the acceptance, B sends a telegram to A, revoking his acceptance.
Issue in the Case:
- Is there a legally enforceable contract between A and B despite B’s revocation of acceptance via telegram?
Principle:
- According to Section 4 of the Indian Contract Act, communication of acceptance is complete when the acceptance letter is posted, and as soon as it is out of the acceptor’s control.
- Section 5 of the Indian Contract Act allows an acceptance to be revoked at any time before it is communicated to the offeror, but not afterwards.
Judgment:
- There is no enforceable contract between A and B.
- B’s revocation of acceptance via telegram effectively cancels his earlier acceptance sent by mail.
- Even if B’s revocation telegram and acceptance letter reach A simultaneously, the acceptance is revoked.
- As per the principles outlined in Sections 4 and 5 of the Indian Contract Act, acceptance can be revoked before communication is complete, but not after.
- Therefore, B’s revocation of acceptance via telegram nullifies the contract, and A cannot enforce it against B.
TheSayeed Answered question March 15, 2024