Indian Contract Act Section 3 — Communication, acceptance and revocation of proposals

Summary

A proposal, an acceptance, or a revocation of either is considered to be communicated when the person making it does something—or fails to do something—that shows they intend to communicate it, or that actually has the effect of communicating it. In other words, communication happens not just through words, but through any action or even a deliberate silence that conveys the message.

Official Text

The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptances, respectively, are deemed to be made by any act or omission of the party proposing, accepting or revoking by which he intends to communicate such proposal, acceptance or revocation, or which has the effect of communicating it.

Related Judgments

• Ferro-Concrete Construction (India) Pvt Ltd & Ors vs State of Maharashtra & Ors — Bombay High Court (Mumbai Principal Seat) (2022)
• U. P. RAJKIYA NIRMAN NIGAM LTD. vs INDURE PVT. LTD. AND OTHERS — Supreme Court of India (1996)
• KARNATAKA POWER TRANSMISSION CORPORATION LIMITED vs JSW ENERGY LIMITED (EARLIER KNOWN AS JINDAL THERMAL POWER COMPANY LIMI — Supreme Court of India (2022)