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Where the proposal and acceptance is through letters, the contract is made at the place where
  • a)
    the acceptance is received
  • b)
    the letter of acceptance is posted
  • c)
    both the above answers
  • d)
    none of the above
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
Where the proposal and acceptance is through letters, the contract is ...
When a contract is made by post, the acceptance is complete as soon as the letter is put into the post box, and that is the place where the contract is made. An interesting implication of the operation of the posting rule is that an acceptance is complete once the letter of acceptance is posted; it makes no difference whether the offeror actually receives the letter.
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Where the proposal and acceptance is through letters, the contract is ...
Explanation:

When the proposal and acceptance are made through letters, the contract is considered to be formed at the place where the letter of acceptance is posted. This means that the contract becomes legally binding as soon as the letter of acceptance is placed in the mail for delivery.

Reasoning:

The reason for this is based on the principle of communication of acceptance. In contract law, an acceptance is said to be communicated when it is received by the proposer. However, in the case of acceptance through letters, it is not always possible for the proposer to be physically present when the acceptance is received.

Therefore, to ensure fairness and certainty in contract formation, the law considers that the acceptance is communicated at the moment when it is posted. This is known as the "postal rule" or the "mailbox rule."

Example:

Let's say that John sends a letter to Jane offering to sell his car for $10,000. Jane receives the offer and decides to accept it. She writes a letter of acceptance and places it in the mail to be delivered to John. At this moment, the contract is formed.

Even if the letter of acceptance takes a few days to reach John, the contract is still considered to be valid from the moment Jane posted the letter. This means that if John were to change his mind and sell the car to someone else before receiving Jane's acceptance, he would be in breach of contract.

Conclusion:

In conclusion, when the proposal and acceptance are made through letters, the contract is legally formed at the place where the letter of acceptance is posted. This ensures fairness and certainty in contract formation, even if there is a delay in the physical delivery of the acceptance.
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Directions: Read the following passage carefully:The Indian Contract Act, 1872 is a legislation governing the contractual relationship between two or more parties - individuals, companies, governments. It deals with all aspects of contracts, such as formation, performance, enforceability of contracts, indemnities and guarantees, bailment and pledge and agency, among others. A contract brought as a result of coercion, undue influence, fraud or misrepresentation would be voidable at the option of the person whose consent was caused.Although one of the oldest laws in India, legal experts note that the Indian Contract Acts relevance has grown manifold in the current business environment with significant increase in the number of contracts being entered into between various parties, and the resultant disputes. Over the last one year or so, there has been an effort to step up corporate governance across boards through new company law provisions, and updating Securities and Exchange Board of Indias (SEBIs) listing agreement for companies.Many legal experts feel that the time has come to take a hard look at the Indian Contract Act to bring it in sync with the changing business environment."Good corporate governance demands well-defined and executed contracts, where the Indian Contract Act plays a crucial role," said Ramesh Vaidyanathan, managing partner, Advaya Legal.Most legal experts say the Indian Contract Act is a relevant and comprehensive piece of legislation. The concepts under the contract law are based on the contract law of the United Kingdom. However, the Act contains certain provisions which are different.As per Section 4 of the Indian Contract Act, 1872, the communication of an acceptance is complete as against the acceptor when it comes to the knowledge of the proposer. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.Section 9 of the Indian Contract Act, 1872 contemplates implied contracts when it lays down that in so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied.Section 73 of the Indian Contract Act provides for compensation for loss or damage caused by breach of contract, naturally arising in the usual course of things from such breach. However, remote and indirect loss or damage sustained by reason of the breach is not provided under the contract law.Under the Indian Contract Act, a contract without consideration is void subject to certain exceptions provided in Section 25 of the Act, such as love and affection u/s 25(1), compensation for voluntary services u/s 25(2), etc. However, the English law recognises contracts without consideration in some cases.Q.Ramaswami proposed to sell his house to Ramanathan. Ramanathan sent his acceptance by post. Next day, Ramanathan sent a telegram withdrawing his acceptance. The telegram of revocation of acceptance was received by Ramaswami before the letter of acceptance.In the light of the above situation, examine the validity of the acceptance according to the Indian Contract Act, 1872.

Directions: Read the following passage carefully:The Indian Contract Act, 1872 is a legislation governing the contractual relationship between two or more parties - individuals, companies, governments. It deals with all aspects of contracts, such as formation, performance, enforceability of contracts, indemnities and guarantees, bailment and pledge and agency, among others. A contract brought as a result of coercion, undue influence, fraud or misrepresentation would be voidable at the option of the person whose consent was caused.Although one of the oldest laws in India, legal experts note that the Indian Contract Acts relevance has grown manifold in the current business environment with significant increase in the number of contracts being entered into between various parties, and the resultant disputes. Over the last one year or so, there has been an effort to step up corporate governance across boards through new company law provisions, and updating Securities and Exchange Board of Indias (SEBIs) listing agreement for companies.Many legal experts feel that the time has come to take a hard look at the Indian Contract Act to bring it in sync with the changing business environment."Good corporate governance demands well-defined and executed contracts, where the Indian Contract Act plays a crucial role," said Ramesh Vaidyanathan, managing partner, Advaya Legal.Most legal experts say the Indian Contract Act is a relevant and comprehensive piece of legislation. The concepts under the contract law are based on the contract law of the United Kingdom. However, the Act contains certain provisions which are different.As per Section 4 of the Indian Contract Act, 1872, the communication of an acceptance is complete as against the acceptor when it comes to the knowledge of the proposer. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.Section 9 of the Indian Contract Act, 1872 contemplates implied contracts when it lays down that in so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied.Section 73 of the Indian Contract Act provides for compensation for loss or damage caused by breach of contract, naturally arising in the usual course of things from such breach. However, remote and indirect loss or damage sustained by reason of the breach is not provided under the contract law.Under the Indian Contract Act, a contract without consideration is void subject to certain exceptions provided in Section 25 of the Act, such as love and affection u/s 25(1), compensation for voluntary services u/s 25(2), etc. However, the English law recognises contracts without consideration in some cases.Q.A coolie in uniform picks up the luggage of S to be carried out of the railway station without being asked by A, and S does not stop him as well. Examine whether the coolie is entitled to receive money from S under the Indian Contract Act, 1872.

Directions: Read the following passage carefully:The Indian Contract Act, 1872 is a legislation governing the contractual relationship between two or more parties - individuals, companies, governments. It deals with all aspects of contracts, such as formation, performance, enforceability of contracts, indemnities and guarantees, bailment and pledge and agency, among others. A contract brought as a result of coercion, undue influence, fraud or misrepresentation would be voidable at the option of the person whose consent was caused.Although one of the oldest laws in India, legal experts note that the Indian Contract Acts relevance has grown manifold in the current business environment with significant increase in the number of contracts being entered into between various parties, and the resultant disputes. Over the last one year or so, there has been an effort to step up corporate governance across boards through new company law provisions, and updating Securities and Exchange Board of Indias (SEBIs) listing agreement for companies.Many legal experts feel that the time has come to take a hard look at the Indian Contract Act to bring it in sync with the changing business environment."Good corporate governance demands well-defined and executed contracts, where the Indian Contract Act plays a crucial role," said Ramesh Vaidyanathan, managing partner, Advaya Legal.Most legal experts say the Indian Contract Act is a relevant and comprehensive piece of legislation. The concepts under the contract law are based on the contract law of the United Kingdom. However, the Act contains certain provisions which are different.As per Section 4 of the Indian Contract Act, 1872, the communication of an acceptance is complete as against the acceptor when it comes to the knowledge of the proposer. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.Section 9 of the Indian Contract Act, 1872 contemplates implied contracts when it lays down that in so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied.Section 73 of the Indian Contract Act provides for compensation for loss or damage caused by breach of contract, naturally arising in the usual course of things from such breach. However, remote and indirect loss or damage sustained by reason of the breach is not provided under the contract law.Under the Indian Contract Act, a contract without consideration is void subject to certain exceptions provided in Section 25 of the Act, such as love and affection u/s 25(1), compensation for voluntary services u/s 25(2), etc. However, the English law recognises contracts without consideration in some cases.Q.Aman contracts to repair Birs house in a certain way and receives the money in advance. Aman repairs the house but not according to the contract. Is Bir entitled to recover the cost of making the repairs?

Directions: Read the following passage carefully:The Indian Contract Act, 1872 is a legislation governing the contractual relationship between two or more parties - individuals, companies, governments. It deals with all aspects of contracts, such as formation, performance, enforceability of contracts, indemnities and guarantees, bailment and pledge and agency, among others. A contract brought as a result of coercion, undue influence, fraud or misrepresentation would be voidable at the option of the person whose consent was caused.Although one of the oldest laws in India, legal experts note that the Indian Contract Acts relevance has grown manifold in the current business environment with significant increase in the number of contracts being entered into between various parties, and the resultant disputes. Over the last one year or so, there has been an effort to step up corporate governance across boards through new company law provisions, and updating Securities and Exchange Board of Indias (SEBIs) listing agreement for companies.Many legal experts feel that the time has come to take a hard look at the Indian Contract Act to bring it in sync with the changing business environment."Good corporate governance demands well-defined and executed contracts, where the Indian Contract Act plays a crucial role," said Ramesh Vaidyanathan, managing partner, Advaya Legal.Most legal experts say the Indian Contract Act is a relevant and comprehensive piece of legislation. The concepts under the contract law are based on the contract law of the United Kingdom. However, the Act contains certain provisions which are different.As per Section 4 of the Indian Contract Act, 1872, the communication of an acceptance is complete as against the acceptor when it comes to the knowledge of the proposer. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.Section 9 of the Indian Contract Act, 1872 contemplates implied contracts when it lays down that in so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied.Section 73 of the Indian Contract Act provides for compensation for loss or damage caused by breach of contract, naturally arising in the usual course of things from such breach. However, remote and indirect loss or damage sustained by reason of the breach is not provided under the contract law.Under the Indian Contract Act, a contract without consideration is void subject to certain exceptions provided in Section 25 of the Act, such as love and affection u/s 25(1), compensation for voluntary services u/s 25(2), etc. However, the English law recognises contracts without consideration in some cases.Q.A student was induced by his teacher to sell his brand new car to the latter at less than the market price to secure more marks in the examination. Accordingly, the car was sold. However, the father of the student persuaded him to sue his teacher. Can the student sue the teacher?

Directions: Read the following passage carefully:The Indian Contract Act, 1872 is a legislation governing the contractual relationship between two or more parties - individuals, companies, governments. It deals with all aspects of contracts, such as formation, performance, enforceability of contracts, indemnities and guarantees, bailment and pledge and agency, among others. A contract brought as a result of coercion, undue influence, fraud or misrepresentation would be voidable at the option of the person whose consent was caused.Although one of the oldest laws in India, legal experts note that the Indian Contract Acts relevance has grown manifold in the current business environment with significant increase in the number of contracts being entered into between various parties, and the resultant disputes. Over the last one year or so, there has been an effort to step up corporate governance across boards through new company law provisions, and updating Securities and Exchange Board of Indias (SEBIs) listing agreement for companies.Many legal experts feel that the time has come to take a hard look at the Indian Contract Act to bring it in sync with the changing business environment."Good corporate governance demands well-defined and executed contracts, where the Indian Contract Act plays a crucial role," said Ramesh Vaidyanathan, managing partner, Advaya Legal.Most legal experts say the Indian Contract Act is a relevant and comprehensive piece of legislation. The concepts under the contract law are based on the contract law of the United Kingdom. However, the Act contains certain provisions which are different.As per Section 4 of the Indian Contract Act, 1872, the communication of an acceptance is complete as against the acceptor when it comes to the knowledge of the proposer. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.Section 9 of the Indian Contract Act, 1872 contemplates implied contracts when it lays down that in so far as such proposal or acceptance is made otherwise than in words, the promise is said to be implied.Section 73 of the Indian Contract Act provides for compensation for loss or damage caused by breach of contract, naturally arising in the usual course of things from such breach. However, remote and indirect loss or damage sustained by reason of the breach is not provided under the contract law.Under the Indian Contract Act, a contract without consideration is void subject to certain exceptions provided in Section 25 of the Act, such as love and affection u/s 25(1), compensation for voluntary services u/s 25(2), etc. However, the English law recognises contracts without consideration in some cases.Q.A husband formed and registered an agreement with his wife that he will give his earnings to her but later denied to fulfil his promise arguing that he was not getting any consideration for the same. As per the passage, is the argument by the husband legally valid?

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Where the proposal and acceptance is through letters, the contract is made at the place wherea)the acceptance is receivedb)the letter of acceptance is postedc)both the above answersd)none of the aboveCorrect answer is option 'B'. Can you explain this answer?
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