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COMMUNICATION, ACCEPTANCE AND REVOCATION

1. Introduction:
The first step towards the formation of a contract is that a proposal must be communicated to the offeree. When this has been done, the offeree must communicate his acceptance of the proposal to the proposer. In case the proposer wants to revoke his proposal or the offeree wants to revoke his acceptance, before the contrect is concluded each must communicate the revocation to the other party.

2. Relevant Provisions:
Sectioins 3, 4 and 5  of the contract Act enact the rules regarding communication of offer, acceptance and their revocation.

3. Ways of Communication:
Section 3 provides two ways in which communication is deemed to be made:
i. by any act or omission of the party by which he intends to communicate and
ii. by any act or omission of the party which has the effect of communication it.

4. Communication when Completed:
Where the contracting parties are fee to face and they want to negotiate with each other there will be immediate communication of and acceptance.

i. Communication of Proposal When completed:
The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

ii. Communication of Acceptance when completed:
The communication of an acceptance completes as against the acceptor when the letter containing the acceptance comes to the knowledge of proposer.

iii. Communication of Revocation When Completed:
The communication of a revocation is complete as against the person who makes it, when it is put in course of transmission to the person to whom it is made.

a. Is communication of Revocation Really Necessary?
To be effective in law a revocation must in general be communicated to the offeree that is notice of revocation must actually reach the offeree.

b. When communication of Revocation Not Needed:

i. Offer to commercial Organization:
Where the offer has been made to a commercial organisation the requirement cannot be taken quite literally in the sense of requiring the revocation to be brought to the actual notice of the offeree.

ii. Fault of Person Whom Revocation Communicated:
Fault of person whom revocation has been communicated may also displace the general rule of communication.

iii. Public Offers:
A third exception to the requirement that a withdrawal must be actually communicated relates to offers made to the public.