Question

Given below is a statement of legal principle followed by a factual situation. Apply the principle to the facts and select the most appropriate answer.

Principle: Proposal (communication) + Acceptance (communication) + Consideration = Contract. The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

Facts: X’s nephew absconded from home. He sent his servant in search of the boy. After the servant had left, X by handbills offered to pay ₹501 to anybody finding his nephew. The servant came to know of this offer only after he had already traced the missing child. He, therefore, brought an action to recover the reward.

पर्याय

• His action would fail because he was not aware of the offer 

• His action would not fail because it was a general offer 

• The fact that he was not aware of the offer does not make any difference and hence it was a valid contract.  It is a mere formality

• None of the above

Answer 1

His action would fail because he was not aware of the offer 

Explanation:

According to Section 4 of the Indian Contract Act, 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 reasonable conclusion in the present problem is that the communication of the proposal is complete when B reads the letter. The above-noted problem is based on the Lalman Shukla v. Gauri Dutta (1913) 11 All LJ 489.