S.4 Contract Act

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Section 4 Contracts Act 1950 – COMMUNICATION WHEN COMPLETE 4 (1) The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made ( ie the acceptor (emphasis added)). 4(2) The communication of an acceptance is complete:-

(a) 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; and(Case Ignatius v Bell and also Byrne v Van Tienhoven) (b) As against the acceptor, when it comes to the knowledge of the proposer. 4(3) The communication of a revocation is complete –

(a) As against the person who makes it, (ie the person who wants to revoke, emphasis added), 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; and (b) As against the person to whom it is made, when it comes to his knowledge

(c) As against the person to whom it is made, when it comes to his knowledge.

(d)

1.Section 4(2) (a)
The communication of acceptance is complete as against the proposer when it is put in a course of transmission, so as to be out of the power of the acceptor. The meaning can be explained better by an example:

Ali proposes to Bakar by letter to sell his car for RM 20 k . Therefore Ali is the proposer and Bakar is the acceptor. The moment Bakar post the letter in the post box , Ali is bound by the contract (ie at that moment when Bakar put the letter in the post box.) As against proposer means that at that point Ali is at a disadvantage (ie the situation is against him or does not favour him). This is because he cannot now revoke the offer any more because there is already an acceptance by Bakar (since there is an offer and acceptance, there is a contract). When put in a course of transmission… means, when the letter is transmitted/sent by mail. So as to be out of the power of the acceptor means that , the acceptor (Bakar) has no more power to take...
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