Under the Indian Contract Act, 1872, the communication of an acceptance made via telephone is complete when:

The acceptance is spoken into the telephone receiver by the offeree

The acceptance comes to the actual knowledge of the offeror / proposer

Under Section 7(2) of the Indian Contract Act, 1872, if the proposer prescribes a manner of acceptance and acceptance is not made in that manner, what is the legal position?

The proposer may, within a reasonable time after acceptance is communicated, insist that acceptance be made in the prescribed manner; failing which he accepts the acceptance

The contract is automatically void

The contract is voidable at the acceptor's option

A proposes, by a letter posted to B, to sell his house for Rs. 1 Crore. Under Section 4 of the Indian Contract Act, 1872, when is the communication of the proposal complete?

When the letter comes to the knowledge of B

When the letter reaches B's city

Legal Principle: Acceptance must be made in the mode prescribed. Factual Scenario: J negotiated sale of his shop to K for Rs. 20 Lakhs and instructed K to send a confirmation letter within two weeks. K accepted over telephone after two days, but sent the confirmation letter after one month. Is J bound by K's acceptance?

Yes, because telephone acceptance was within two weeks

No, because acceptance was not in the specified mode within the stipulated two weeks

No, because sale of immovable property over phone is invalid

Yes, as prescribed mode is non-binding

Factual Scenario: Delhi Government auctioned a wine shop license. X submitted the highest bid, provisionally accepted 'subject to confirmation by the Chief Commissioner who may reject any bid without assigning reasons.' X failed to deposit the required amount, and Chief Commissioner rejected the bid. The Government re-auctioned at a lower price and sued X for the difference. Is X liable?

Yes, X is liable as highest bidder

Yes, because government suffered loss

No, because contract was incomplete until confirmed by the Chief Commissioner, and X could withdraw bid prior to confirmation

Under the scheme of Sections 4 and 5 of the Indian Contract Act, 1872:

Both offer and acceptance are revocable before communication is complete against the respective party

Offer and acceptance are both irrevocable once communicated

An offer can be revoked but acceptance cannot

Acceptance can be revoked but offer cannot

Where acceptance of an offer is communicated electronically via email or instant messaging:

The traditional postal rule applies

The receipt (recipient) rule applies (communication is complete when received by proposer)

📖 Indian Contract Act, 1872•🎯 135 Practice MCQs

Chapter I: Of the Communication, Acceptance and Revocation of Proposals (Sections 3–9)

Chapter-wise objective questions with statutory bare act articles, landmark Supreme Court case laws, and past judicial service citations.

Communication of AcceptanceTelephoneBhagwandas v GirdharilalSection 7(2)Prescribed MannerAcceptanceSection 7(1)Absolute and UnqualifiedSection 6Revocation of ProposalSection 4Communication of Proposal

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Chapter I: Of the Communication, Acceptance and Revocation of Proposals (Sections 3–9) • 135 Questions

📚 Chapter Practice Coverage

This practice module for Chapter I: Of the Communication, Acceptance and Revocation of Proposals (Sections 3–9) contains 135 Multiple Choice Questions tailored for State Judicial Service Preliminary Examinations (including UP PCS-J, Delhi Judicial Service, Bihar Judiciary, MP Judiciary, Rajasthan Judicial Service), CLAT LL.M, All India Bar Examination (AIBE), and UGC-NET Law.

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