Section 106 The Indian Contract Act, 1872
Section 106 of The Indian Contract Act, 1872 deals with the communication and revocation of proposals and acceptances when parties are at a distance.
📜 Section 106 – Communication when agent is employed
"The communication of an acceptance is complete — as against the proposer, when it is put into a course of transmission to him, so as to be out of the power of the acceptor;
— as against the acceptor, when it comes to the knowledge of the proposer."
✅ Explanation:
This section clarifies when communication is considered complete if done through an agent or other intermediary:
Against the proposer (offeror): The acceptance is considered complete once it is dispatched by the acceptor, i.e., put into a course of transmission outside the acceptor's control.
Example: If A sends an offer to B, and B posts a letter of acceptance through his agent or mail, it is binding on A from that moment.
Against the acceptor: It is complete only when the proposer actually receives the acceptance.
📌 Illustration:
A proposes to B by letter.
B accepts the proposal by sending a letter through an agent.
The moment the letter is handed to the agent for delivery, the communication is complete as against A.
When A receives the letter, it is complete as against B.
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