Accidental Formation of a Contract
- This situation arises when both the letter of acceptance and the telegram of revocation of acceptance are delivered to the offeror at the same time. In such situations, the formation of a contract will depend on the matter of chance. If the offeror first reads the letter of acceptance, and then the telegram, a binding contract will arise.
- But, in cases if the offeror reads the telegram of revocation of acceptance first, and then the letter of acceptance, there will be no binding contract because the communication of revocation comes to the offeror’s notice first than the communication of acceptance. Formation of a Contract in such situations depends on a matter of chance and therefore, such contracts are called Accidental Form of Contracts.
- In situations like these, the party that has been negatively impacted may pursue legal remedies such as rescission, which entails terminating the contract and putting the parties back in the positions they were in before the contract was signed. The Indian Contract Act includes provisions, such as those on errors and voidability, that handle instances in which a contract is made under circumstances that are either unintentional or erroneous.
Communication of Offer, Acceptance and Revocation
When it comes to the field of contract law, efficient communication is a fundamental component that determines the process of forming, accepting, and rescinding offers. In 1872, the Indian Contract Act was created, which offers a thorough foundation for comprehending the dynamics of communication within contractual relationships. To shed light on the intricacies that drive these essential components of contract formation in India, this essay dives into the fundamental concepts that underline the communication of offer, acceptance, and revocation.
A clear and definite offer is required under Section 2(a), which states that “An offer must be able to create a legally enforceable agreement and must be clear and definite. Uncertainty and the possibility of disagreements might result from terminology that is ambiguous or vague.”
Geeky Takeaways:
- When contracting parties are face to face and negotiate in person, there is an instantaneous communication of offer and acceptance which gives rise to a valid contract.
- A valid contract comes into existence when the moment the offeree gives his absolute and unqualified acceptance to the proposal made by the offeror.
- The question of revocation does not arise in cases where an offer is made and accepted instantly at the same time.
- Thus, communication plays an important role in the Indian Contract Act, 1872.
Table of Content
- Communication of an Offer
- Legal Rules for Communication under the Act
- Communication of an Acceptance
- Communication of Revocation
- Time during which an Offer or Acceptance can be Revoked
- Effect of Delay or Loss of Letter of Acceptance in Postal Transit
- Accidental Formation of a Contract
- Contracts over the Telephone
- Conclusion
- Frequently Asked Questions (FAQs)
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