Chapter I - Of the Communication, Acceptance and Revocation of Proposals
Section 3
Section 3: Communication of proposals and acceptances
Section 3 explains that proposals, acceptances and revocations can be communicated through relevant acts or omissions. It directs attention to intention and actual communicative effect, not just the label or form of a message.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
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.
Rule and business relevance
The act or omission must be that of the proposing, accepting or revoking party and must intend to communicate, or have the effect of communicating, the relevant proposal, acceptance or revocation. Section 4 separately determines when communication is complete.
Limits and related provisions
The provision does not turn every silence into acceptance or dispense with a required manner of acceptance. The context, actual communication, Section 7 requirements and other applicable rules matter. Keep electronic and other transmission questions tied to their proper legal framework rather than assuming all channels behave identically.
Hypothetical business example
Hypothetical: parties dispute whether dispatching goods communicated acceptance of an order. They examine the proposal, the conduct and its communicative effect together with the applicable acceptance rules, rather than treating the absence of a signed letter as the only issue.
Practical decision flow
Preserve the proposal, response and relevant conduct in chronological order.
Identify the act or omission said to communicate the legal step and its intended or actual effect.
Apply the separate completion, prescribed-manner and enforceability rules to the facts.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Preserve the proposal, response and relevant conduct in chronological order.
- Identify the act or omission said to communicate the legal step and its intended or actual effect.
- Apply the separate completion, prescribed-manner and enforceability rules to the facts.
Avoid
- The provision does not turn every silence into acceptance or dispense with a required manner of acceptance. The context, actual communication, Section 7 requirements and other applicable rules matter. Keep electronic and other transmission questions tied to their proper legal framework rather than assuming all channels behave identically.
Glossary
- Communication
- The relevant act or omission carrying the proposal, acceptance or revocation.
- Communicative effect
- The effect of conveying the particular legal step in its context.
Frequently asked questions
Must communication always use written words?
The section refers to acts or omissions with the specified intention or effect; other provisions and formalities still apply.
Does any silence automatically mean acceptance?
No. The actual context and acceptance requirements must be established.
Does Section 3 alone decide when acceptance is complete?
No. Section 4 separately addresses completion of communication.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026