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    The communication of an acceptance is complete as against the proposer:
    Question

    The communication of an acceptance is complete as against the proposer:

    A.

    when it is posted to him

    B.

    when it comes to the knowledge of the proposer

    C.

    when the letter containing acceptance is received by the proposer

    D.

    when it is put in the course of transmission, so as to be out of the acceptor’s power

    Correct option is D


    As per Section 4 of the Indian Contract Act, 1872, the communication of an acceptance is complete as against the proposer when it is put in a course of transmission by the acceptor, so as to be out of the latter’s power. This essentially means once the acceptance is posted, the contract is deemed complete from the side of the proposer. This is known as the postal rule, recognized in the famous English case Adams v. Lindsell (1818) and followed in India.
    Information Booster:
    · Against the acceptor, communication is complete when it comes to the knowledge of the proposer.
    · This principle helps fix the moment of contract formation and protects the acceptor from withdrawal by the proposer once the acceptance is posted.

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