An Agreement over a Telephone Is Known as

The ratio decidendi of this case clarifies the legality of section 4 of the Indian Contract Act of 1872. According to Section 4, the submission of a proposal is complete when it comes to knowing the person to whom it is addressed. The notification of an acceptance, unlike the proposer, is complete if it is placed in a transmission channel to him in order to be beyond the power of the acceptor; to the acceptor when it comes to the knowledge of the applicant. The notification of a revocation shall be complete in relation to the person making it, if it is placed in a means of transmission to the person to whom it is addressed, so that it is beyond the power of the person executing it; unlike the person for whom it is made when it comes to their knowledge. In this case, the suggestion of the hypothesis was communicated through a telephone conversation, which meant that the applicant had heard it immediately. The defendants appealed a point of law in which they asked the court to bring an action against the decision on the merits. The Supreme Court of Gujarat rejected the above-mentioned application in limine. The defendants also appealed the decision with special leave. They argued that, in the case of a telephone contract, the place where the offer was accepted was the place where the contract was concluded and that only the Court had jurisdiction in the territorial jurisdiction in which the offer was accepted and the acceptance was expressed in the telephone certificate. In a valid contract, one party makes an offer and the other party agrees. This is commonly called the „meeting of spirits“ because both parties accept these conditions. In our example, the aunt offers to lend money to her nephew on the condition that he repay it within a reasonable time. The nephew accepts her offer and promises to pay her back in full after buying her new tire.

If the parties are distant under Indian law and communicate a tender and an acceptance by telephone or telex, the place of conclusion of the contract shall be the place where the tenderer sends its acceptance of the tender to the supplier. [14] Thus, when the target recipient expresses his acceptance, the place where he says he says that it is the one where a contract is concluded. The offer may indicate where the letter of acceptance may be sent; in this case, the letter must reach this place within the time limit, the message must be sent to the correct address[5] or to the last known address[6]. If the offer does not provide an address, the letter may be sent to a reasonable or usual place such as place of business or residence. The letter of admission may be sent to the sender`s address indicated in the letter if the usual address is not known. It cannot be said that a letter that is not properly addressed was sent during transmission.[7] Most people feel that only contracts properly written on paper and signed by the respective parties can be enforced. However, it is important to know that in today`s information technology era, most contracts are not written and do not always have to be signed. A contract is simply an agreement between two or more parties to do something (or refrain from doing something) in exchange for some form of consideration. With this in mind, there is no reason why a contract concluded by e-mail should not be legally enforceable. The facts are as follows: in the present case, the Ahmedabad plaintiffs made an oral offer by telephone for the purchase of cottonseed cakes from the defendants. The defendants accepted this offer by telephone in Khamgaon. Later, the defendants did not deliver the necessary cottonseed cake.

As a result, the plaintiffs sued the defendants for breach of contract. The plaintiffs sought compensation for their financial loss of Rs 31,150. The complaint was filed in Ahmedabad. The defendants argued that the Ahmedabad court did not have jurisdiction because the contract was concluded by accepting the offer by telephone in Khamgaon. On the other hand, the plaintiffs argued that the contract was concluded when he was informed of the acceptance in Ahmedabad (when he heard the acceptance by telephone) and that the action therefore fell within the jurisdiction of the Ahmedabad court. The Supreme Court, after reviewing the facts and evidence of the case, ruled that the contract was concluded in Ahmedabad, where acceptance was communicated and where the part of the legal action for breach of contract in this case fell within the jurisdiction of the Court of Ahmedabad. If an oral contract fails one or more elements of a valid contract, a court may declare the agreement null and void and unenforceable. Many States have provisions for certain treaties that must be in writing, which is considered inadequate oral agreements. The primary law governing the various aspects of the formation, acceptance, revocation or performance of contracts is the Indian Contract Act of 1872. For a contract to enter into force, certain elements must be fulfilled, namely: What is a valid offer under contract law? A valid offer is the expression of the desire to enter into a contract that is beneficial to both parties to the agreement.

With the advent of information technology in the 21st century, forms of communication have changed over time and people have moved on to new forms of communication such as email, fax, telephone, etc. Initially, offer and acceptance were mainly in the form of postal communication, but today we have various forms of communication that are much faster and more convenient, such as emails, and we call them instant forms of communication. Today, for the purposes of commercial contracts, e-mail is the most important. With the change in modes of communication, many questions are therefore raised before the courts, e.B. when a contract is calculated and when a contract is concluded that differs from the postal mode of communication. Another mode that has prevailed since the 90s is that of telephone and telex services. In the case of Bhagwandas Goverdhandas Kedia vs. M/S. Girdharilal Parshottamdas[16], which is considered a milestone in Indian law and describes communication by immediate methods, by telephone, the following instructions were given: The parties must exchange something valuable (monetary or otherwise) known as consideration. In addition, the exchanged item must be legal. In our example, the $200 and the promise to return it are examples of a legitimate consideration.

The nephew, for example, could not replace his repayment of the money with illegal drugs. It is also argued that in the case of an immediate mode of communication such as telephone, once the link between the parties is established, no third party is involved, while in postal communication, the postal company acts as a third party. Therefore, in case of acceptance, the contract is concluded when the acceptance is received by the applicant, that is, when he has heard the acceptance message. The postal requirement for completion of acceptance, which is considered complete at the time of acceptance during transmission, does not apply to communication by telephone or telex. [9] Bhagwandas Goverdhandas Kedia vs M/S. Girdharilal Parshottamdas AIR1966 SC 543 If the parties are present in front of each other during the proposal period, acceptance can easily be communicated by the target recipient. But the absence of parts of each other allows them to rely on external sources to convey their message. If a telephone is used as a means of communication, the acceptor knows whether or not the provider has received its message, and can therefore send it back if there are malfunctions in the transmission of the message regarding acceptance. Without a witness to the deal, the aunt could spend $200 — and a decent relationship with her nephew. Before a contract can be performed, it begins with an offer to the other party.

Offers are also called offers. Pursuant to section 2(a) of the Contracts Act, a person has made an offer if it involves a willingness to do or not to do a certain act that mutually benefits the other party to the agreement. An offer must be made with the intention of becoming legally binding upon acceptance. A contract is concluded when the offer has been accepted without reservation. In the above context, there are considerable differences of opinion. Few phones permeated the Indian subcontinent during the period when this contract was concluded by both parties. Even the Indian Contracts Act states in section 4 that the notification of acceptance to the applicant is complete only if it is sent to the applicant. The drafstmen of this law referred to post offices and letters, not phone calls. In the case of a telephone call, voices shall be heard immediately and without delay. If there is no delay, the contract is already concluded in the next second of the notification of the offer on its index. .

Wir verwenden Cookies, um Ihnen das beste Erlebnis auf unserer Website zu bieten.