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

Under the Indian Contract Act, 1872, the communication of a proposal is deemed to be made by:

A proposal is communicated by any act or omission of the proposer by which he intends to communicate it, or which has the effect of communicating it. It is not restricted to spoken or written words, so conduct can also communicate a proposal.

  1. AOnly a written or spoken statement addressed to the other party
  2. BAny act or omission of the proposer by which he intends to communicate the proposal, or which has the effect of communicating itCorrect
  3. COnly an act that is registered or witnessed by a third person
  4. DOnly a statement made in the presence of the person to whom it is addressed

Explanation

Section 3 says communication of proposals is deemed made by any act or omission of the party proposing by which he intends to communicate it or which has the effect of communicating it. It is not limited to words, writing or presence. The other options add requirements the Act does not impose.

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