M.P Civil Jugde Pre Exam 1998

'A' proposes, by letter, to sell a house to 'B' at a certain price. The communication of proposal is complete when-

Verified Answer
A. 'A' puts letter in letter-box
B. 'B' receives the letter
C. 'B' puts reply in letter-box
D. 'A' receives reply of 'B'

Explanation:

Section 4 of the Indian Contract Act, 1872 states that the communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. Therefore, when 'B' receives the letter.