Tutorial 2 - Communication of acceptance PDF

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Communication of acceptance...

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Explain, with reference to decided cases, the principles when the communication of acceptance is complete when using the post and when talking face-to-face. -Post In postal rule, acceptance made by post or telegram. The communication of acceptance is complete: For the proposer, once the letter is posted by the acceptor, he is bind to the contract and the communication of acceptance is complete for proposer. For the acceptor, when the letter is received by the proposer then the communication of acceptance is considered complete. In Ignatius v Bell, the defendant received the notice of acceptance after the due date but the court held that the acceptance is valid where S.4(2) applies, that the acceptance was complete as against the proposer which is the defendant, when it was put in a course of transmission to him, so as to be out of the power of the acceptor; in other words when the notice was put into the post. -Talking face-to-face For talking face-to-face, the communication of the acceptance is considered complete when it is received by the offeror. For instance, A and B are making contract face-to-face. A shouted an offer to B across a road but A do not hear B’s reply as somebody honked the car horn at that moment, therefore there is no contract valid between them. If B wishes to make a contract, then B must wait till the sound is gone and then shout back his answer. A is not bound to the contract as long as he does not receive B’s reply. In Bhagwandas Goverdhanda Kedia v Girdharlal Parshottamdas and Co, the court held that when the offer was made by the plaintiff by telephone conversation from Ahmadadad and the same was accepted by the defendant by telephone conversation from Khamgaon, the contract is made where the acceptance was received when they are able to hear the voice of each other. Although this case uses telephone to communicate but this case uses the same principle as for talking face-to-face....