Contracts

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TABLE OF CONTENTS
1. Introduction ……………………………………………………………..2 2. Communication, acceptance and Revocation of Proposals……………...3 3. Communication when complete…………………………………………6 4. Acceptance must be absolute……………………………………………11 5. Acceptance by performing conditions, or receiving consideration……..13 6. Conclusion………………………………………………………………15 7. Bibliography…………………………………………………………….16

INTRODUCTION
Indian Contract Act 1872 is the main source of law regulating contracts in Indian law, as subsequently amended. It determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties. Indian contract deals with the enforcement of these rights and duties upon the parties. The Indian Contract Act 1872 sections 1-75 came into force on 1st September 1872. It applies to the whole of India except the state of Jammu and Kashmir. It is not a complete and exhaustive law on all types of contracts. Section 2(h) of the Act defines the term contract as "any agreement enforceable by law". There are two essentials of this act, agreement and enforceability. Section 2(e) defines agreement as "every promise and every set of promises, forming the consideration for each other." Again Section 2(b) defines promise in these words: "when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Proposal when accepted becomes a promise." This project mainly deals with communication of acceptance and the position of English and Indian cases in relation to communication of acceptance.

SECTION 3 – COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptances, respectively, are deemed to be made by an 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. According to Section 2(a) and Section 2(b) a promisor has to signify his willingness and promisee has to signify his assent. The words “signifies to another” in section 2(a) clearly imply that the willingness or the assent as the case may be, must be brought to the notice of the other, in other words must be communicated to the other. Section 3 provides two general modes of communication.

1. Any act or
2. Omission
The first mode, ‘any act’ would include any conduct and words, written (letters, telegrams, telex message, etc) or oral (telephonic messages). Omission would include such conduct or forbearance on one’s part that the other person takes it as his willingness or assent. So we gather that the main principle is that there must be some external manifestation or an overt act of acceptance. A mere mental but unilateral act of assent in one’s own mind will not amount to a communication as it cannot have the effect of communicating it to the other. Some cases relating to this principle are as follows:-

Brogden v. Metropolitan Railway Co.
Facts- Mr. Brogden, the chief of a partnership of three, had supplied the Metropolitan Railway Company with coals for a number of years. Brogden then suggested that a formal contract should be entered into between them for longer term coal supply. Each side's agents met together and negotiated. Metropolitan's agents drew up some terms of agreement and sent them to Brogden. Brogden wrote in some parts which had been left blank and inserted an arbitrator who would decide upon differences which might arise. He wrote "approved" at the end and sent back the agreement documents. Metropolitan's agent filed the documents and did nothing more. For a while, both acted according to the agreement document's terms. But then some more serious disagreements arose, and Brogden argued that...
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