SYNOPSIS

LAW OF CONTRACTS – I

COMMUNICATION OF ACCEPTANCE BY INSTANTANEOUS MODES

INTRODUCTION

Section 4 of The Indian Contract Act, 1872, explains the following rules as to when the
communication of acceptance is complete:

1. The communication of acceptance is complete as against the proposer, when it is put

in the course of transmission to him so as to be out of the power of the acceptor.
2. The communication of acceptance is complete as against the acceptor, when it comes
to knowledge of the proposer.

Section 4 of The Indian Contract Act, 1872 which makes provisions about communication of
acceptance does not make a mention whether these provisions relate to communication made to
with the help of telephone, telex and email.

STATEMENT OF PURPOSE

To analyse Section 4 of The Indian Contract Act, 1872 with respect to communication of
acceptance in instantaneous modes of communication and to understand it profoundly by studying
the Entores Ltd. v. Miles Far Corporation and Bhagwandas Govardhandas Kedia v. Girdharilal
and a latest case on the issue.

RESEARCH QUESTION

The project deals with the primary question as to what is the position on communication of
acceptance with respect to instantaneous modes of communication.
SCOPE

In today’s world of technology, the instantaneous modes of communication are often the modes
through which we make contracts with others and hence it is very important to know the position
in India as to the communication of acceptance through instantaneous modes is concerned. The
project recognises the fact the fact that we do not have a fixed law on this aspect as section 4 does
not expressly mentions about instantaneous mode and hence with the help of common law cases
we shall try to achieve an answer for our research problem.

RESEARCH METHODOLOGY

The methodology adopted in the making of this project is non-doctrinal research method. Various
research papers as well as books have been taken into consideration for the making of this project.
The observations as well as conclusions are based on the secondary sources. The situation has been
analysed through study of various cases both Indian and foreign providing basis to the hypothesis.

WORK PLAN

I will be working on this project to achieve clarity on the position on communication of acceptance
through telex mode in particular and I will be studying the landmark case on telex: Entores case. I
will be using commentaries like “The Indian Contract Act : With a Commentary, Critical and
Explanatory” by Sir Frederick Pollock, “Mulla’s Indian Contract Act” by Mulla and “Textbook on
Law of Contract and Specific Relief” by Avtar Singh. I will also study different cases to bring
more clarity on the position of courts of India and England on this matter.

SAKET KUMAR RAO

2017BALLB79