Section 4 The Indian Contract Act, 1872
📘 Section 4 – The Indian Contract Act, 1872
Title: Communication when complete
🔹 Bare Text of Section 4:
The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.
The communication of an acceptance is complete:
As against the proposer, when it is put in a course of transmission to him, so as to be out of the power of the acceptor;
As against the acceptor, when it comes to the knowledge of the proposer.
The communication of a revocation is complete:
As against the person who makes it, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it;
As against the person to whom it is made, when it comes to his knowledge.
📘 Explanation with Example:
This section defines when communication is considered complete in three cases:
Proposal (offer)
Acceptance
Revocation (withdrawal of offer or acceptance)
✅ Illustration (from the Act):
🔹 A proposes by letter to sell a house to B.
The proposal is complete when B receives the letter.
🔹 B accepts the proposal by posting a letter to A.
Acceptance is complete:
As against A (the proposer), when B posts the letter – A is now bound.
As against B (the acceptor), when A receives the letter.
🔹 If A revokes his proposal by sending a telegram, and it reaches B before the acceptance letter is posted, the revocation is valid.
📌 Significance of Section 4:
It ensures certainty in timing of contract formation.
Helps determine when a party is bound by the contract.
Important in postal rule cases (i.e., contracts via post or email).
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