In this CLAT preparation series, we publish detailed answers to old CLAT exam questions well supported with statutory provisions, supporting judgments and easy illustrations.
Legal Aptitude: The section contains 50 questions. Each question contains legal principles based on statutory enactments and facts related to the same. These propositions may not be the true ones. The student has to presume that it is true for reaching the conclusion to the given problem. Four answer choices are given in each question from which the student has to select the most appropriate and reasonable conclusion based on the given principle. The section is aimed to test one’s ability in legal aptitude, awareness of the law, research aptitude and problem-solving ability. It may be noted that the most reasonable conclusion may be absurd or unacceptable for any reason, yet the student must adhere to the principle given to arrive at the same in the question.
Question 114 Principle: The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.
Facts: A sent a letter making a proposal to B‘ to purchase the house of B.
(A) The communication of proposal is complete when A sent the letter.
(B) The communication of proposal is complete when B‘s wife received it.
(C) The communication of proposal is complete when B‘s wife handed over the letter to B. (D) The communication of proposal is complete when B reads the letter.
Communication means the exchange of information from one person to another. It is the primary element required in a contract. If A wants to sell a pen to B, he must make B know that he has the intention of selling it to him. For this, A may directly contact B and tell the matter. He may write a letter, send Emails, message, etc. If A has sent a letter, B will know about the proposal only if he reads the letter. There is no further explanation necessary for this question.
The above question is purely based on Section 3 and 4 of the Indian Contract Act(hereinafter referred to as “ICA”). The exact provisions will shed true light to seek an answer to the above question.
As per Section 3 of ICA the communication of proposals is deemed to be made by any act or omission of the party proposing it by which he intends to communicate such proposal or which has the effect of communicating it.
Section 4 of ICA: Communication when complete.—The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. —The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.” ……………..
Illustrations provided in the section is also noteworthy.
(a) A proposes, by letter, to sell a house to B at a certain price.” The communication of the proposal is complete when B receives the letter. The communication of the proposal is complete when B receives the letter.”
We may not need any further explanation to find out the solution as the proposition above is the exact replica of the statutory section.
Here the fact is that A sent a letter to B making a proposal to purchase the house of B.Now we can analyze each answer option.
Option A: The communication of proposal is complete when A sent the letter.
Since the sending of the letter by A is the only thing noted by this answer option, this is absolutely not the correct answer.
Option B: The communication of proposal is complete when B‘s wife received it.
Since the proposition requires that B should have direct knowledge of the proposal made by A we cannot choose this option as it has not mentioned whether B’s wife told him about it or handed over the letter to him and he has read it.
Option C: The communication of proposal is complete when B‘s wife handed over the letter to B.
Do not get tricked by this answer choice. Here B has got the letter. The proposition is that he must have knowledge of the proposal. He will get knowledge of the same when he reads it. Even if it is a registered letter, the law presumes his knowledge only when the sender gets acknowledgement of the letter, notwithstanding whether the recipient has read it or not. But here all those facts are silent. Now we can only presume that B had received the letter but has no knowledge of the proposal yet. So we must move on to next option. We may choose this option as the most probable answer only if the other options are truly negative.
Option D: The communication of proposal is complete when B reads the letter.
It could not get more direct than this choice. The answer choice is perfectly in tune with the above statutory provision and illustration. Here B has read the letter and now has knowledge of the proposal by A. So, as far as A (proposer) is concerned, the communication of a proposal is completed as soon as B (recipient) had knowledge of it. Thus we can undoubtedly choose Option D as the correct answer.
Case Law
The landmark case of Lalman Shukla vs. Gauri Dutta decided by Allahabad High Court.
The case was decided in 1973. Facts, in short, are thus: Defendant’s nephew absconded. He sent the plaintiff who was his servant in search of the missing nephew. The defendant later distributed several handbills by which he promised to pay the reward for anyone who procures his missing nephew. Unknowing this, the plaintiff procured the missing nephew and continued in service of the defendant for some more months after which he was dismissed. Later the plaintiff filed a claim against the defendant for the reward. However, finally, the Allahabad High Court decided against the plaintiff. Court held that a contract is complete when the proposal is accepted by another person. The payment of reward was the proposal and it was not accepted by the plaintiff. In fact, he was unknown to the same. Furthermore, the proposal was not made vide public advertisement. The defendant merely distributed some handbills. If it was a public advertisement and general offer in nature, the plaintiff may be said to have deemed knowledge in the eyes of law for claiming that reward. In this case, the proposal was not known to the plaintiff and hence he has no chance to accept the same. Hence, he can never rightfully claim the reward.
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