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CMA Foundation · Fundamentals of Business Laws and Business Communication · Essential Elements of a Contract, Offer and Acceptance

Under Section 3 of the Indian Contract Act, 1872, the communication of a proposal, acceptance or revocation is deemed to be made by:

Communication of a proposal, acceptance or revocation is deemed made by any act or omission of the party that he intends to use to communicate it, or that actually has the effect of communicating it. It is not limited to words or any prescribed form.

  1. AOnly a written or spoken statement addressed to the other party
  2. BAny act or omission by which the party intends to communicate it, or which has the effect of communicating itCorrect
  3. COnly an act done in the presence of a witness
  4. DOnly a registered letter or telegram

Explanation

Section 3 says communication is deemed made by any act or omission of the party by which he intends to communicate, or which has the effect of communicating it. It is not limited to words, witnesses or any prescribed form such as registered post.

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