Section 3 The Indian Contract Act, 1872

📜 Section 3 – The Indian Contract Act, 1872

🔹 Section 3: Communication, acceptance and revocation of proposals

🧾 Bare Act Text:

The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptances, respectively, are deemed to be made by any act or omission of the party proposing, accepting or revoking, by which he intends to communicate such proposal, acceptance or revocation, or which has the effect of communicating it.

Explanation in Simple Terms:

Section 3 of the Indian Contract Act, 1872 lays down how proposals, acceptances, and revocations are communicated between parties.

🔸 Key Concepts:

Proposal (Offer) – When someone offers to do or not do something with the intention of entering into a contract.

Acceptance – When the person to whom the proposal is made agrees to it.

Revocation – When either the proposal or acceptance is withdrawn before it becomes binding.

🧩 Mode of Communication:

Communication can be done in any way — written, spoken, or implied through actions — as long as it:

Is intended to convey the message, or

Actually conveys the message.

So even silence, conduct, or failure to act (if it conveys intention) can be a form of communication.

🧑‍⚖️ Example:

A sends a written letter of offer to B — this is a proposal communicated.

B says “I accept” over a phone call — this is an acceptance communicated.

If A sends a cancellation before B accepts, that is a revocation of offer.

If B accepts silently by starting the work, that may be implied acceptance, depending on the context.

📌 Purpose of Section 3:

To clarify how and when a proposal or acceptance becomes known to the other party — which is crucial in determining when a contract is formed.

 

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