1- Introduction

In contract law, communication plays a crucial role in forming and enforcing contracts. An offer, acceptance, and the terms of a contract are typically communicated between parties. Clear and unambiguous communication helps establish mutual assent and ensures that both parties understand their rights and obligations. If disputes arise, written or verbal communication may be used as evidence in court to interpret the terms of the contract. It's important to have transparent and effective communication to avoid misunderstandings and uphold the integrity of contractual agreements. In contract law, the communication section outlines how the parties involved in a contract exchange information and express their intentions. Key elements in this section may include:

1. Offer and Acceptance: Clearly defining how an offer is communicated and the manner in which acceptance must be communicated. This helps establish when a contract becomes binding.

2. Revocation of Offer: Specifying how and when an offer can be revoked, ensuring clarity on when an offer is no longer valid.

3. Mode Communication:Stipulating the acceptable methods of communication between parties, such as written, electronic, or verbal, and whether certain forms are legally required.

4. Time Frames: Indicating deadlines for responding to offers or other communications to avoid ambiguity and potential disputes.

5. Effective Communication: Clarifying when communication is considered effective for legal purposes, which is essential for determining the timing of contract formation and performance.

6. Notices: Addressing how and where formal notices related to the contract should be sent, ensuring that important information reaches the appropriate parties.

7. Electronic Communication:If applicable, addressing the use of electronic communication and ensuring its validity in contract formation. A well-drafted communication section helps prevent misunderstandings and provides a framework for the parties to interact in a legally binding manner.

2- Communication of acceptance

An offer is accepted when the acceptance is communicated.The communication must be made to the offeror and a communication of acceptance made to a third person creates no contract.

Case study - Felthouse v. Bindley 1862

Facts

The plaintiff, Felthouse, wanted to purchase a horse from his nephew. However, there was a misunderstanding in the communication. Felthouse wrote to his nephew, Bindley, stating that if he didn't hear otherwise, he would consider the horse his property. Bindley did not respond directly but intended to keep the horse.

Issue

The key legal issue was whether silence or non-response could be considered acceptance in forming a contract. The court ruled against Felthouse, stating that there was no valid contract because acceptance must be communicated explicitly. In this case, Bindley's silence was not considered acceptance, and Felthouse couldn't enforce the alleged agreement.

Judgement

In the Felthouse v. Bindley case, the judgment favored Bindley. The court held that there was no valid contract because silence or non-response could not be considered as acceptance. Since Bindley did not explicitly communicate his acceptance to the offer, there was no binding agreement. As a result, Felthouse was unable to claim ownership of the horse. The case established the principle that acceptance in a contract must be communicated clearly and cannot be inferred from silence.

3- 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 an acceptance is complete as against the proposer, when it is put in 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 knowledge of the proposer.

Case study - Lalman shukla v. Gauri dutt 1913

Facts-

In this case, the defendant Gauri Dutts Nephew had absconded and was nowhere to be found. After the defendant be came aware of the same, Dutt had sent all the servants in search of the missing nephew. The plaintiff Lalman Shukla was one of the servants who had gone out in search of the nephew. The plaintiff eventually found him and brought him back.When Lalman Shukla had left the house to leave for Haridwar from Kanpur he was handed some money for his railway fare and other expenses. As soon as Lalman Shukla had left the house, the defendant announced a reward of Rs. 501 for whosoever found Dutts nephew. Shukla had no idea that such an announcement was made. The plaintiff found the missing nephew and brought him back to his home in Kanpur. Six months after the said incident occurred, Dutt sacked the plaintiff. After being removed from the job, the plaintiff claimed the money from the defendant and the latter denied to pay the said remuneration. As a result the plaintiff Lalman Shukla filed a case against Gauri Dutt, his master, for not rewarding him as he was entitled to.

Issues

The main issues which were raised in this case were as follows:

Whether Lalman Shukla was entitled to get the reward from Gauri Dutt for tracing the missing boy.

Whether there was a valid acceptance of the offer made by the plaintiff.

Whether there exists a contract or whether the situation amounts to a contract between the two.

Judgement

After analyzing all the facts of the case, the honourable high court held that for creating or entering into a valid contract there has to be knowledge and assent to the offeree made by the proposer. Here, the plaintiff did not know the reward before performing his act. He only came to know about it later, in which case there was no possibility of accepting the offer. Hence, there was no contract. Therefore, Lalman Shukla was not entitled to get or claim the reward. The judge reiterated that the plaintiff was fulfilling his obligations as a servant of tracing the missing boy which was a part of his duty. Therefore, the plaintiffs suit against the defendant was completely dismissed by the court.

4 - Communication is important in contract law

Clear communication is essential in contract negotiations because it helps the parties understand each other's intentions. By communicating clearly, both parties can ensure that they are on the same page regarding the terms of the contract, which can prevent misunderstandings and disputes down the road.

CITATIONS

1. Contract - I by r.k bangia

2. Indian contract act 1872 section 3

3. Supra note 2 section 4

4. Supra note 1