Chapter I - Of the Communication, Acceptance and Revocation of Proposals
Section 4
Section 4: When communication becomes complete
Section 4 uses different completion points for a proposal, acceptance and revocation. For acceptance and revocation, it distinguishes the position of the sender from the position of the recipient.
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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 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 the knowledge of the proposer.
The communication of a revocation is complete,—
as against the person who makes it, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it;
as against the person to whom it is made, when it comes to his knowledge.
Illustrations
(a) A proposes, by letter, to sell a house to B at a certain price.
The communication of the proposal is complete when B receives the letter.
(b) B accepts A’s proposal by a letter sent by post.
The communication of the acceptance is complete,
as against A when the letter is posted;
as against B, when the letter is received by A.
(c) A revokes his proposal by telegram. The revocation is complete as against A when the telegram is despatched. It is complete as against B when B receives it. B revokes his acceptance by telegram. B’s revocation is complete as against B when the telegram is despatched, and as against A when it reaches him.
Rule and business relevance
A proposal is communicated when it reaches the recipient's knowledge. Acceptance is complete against the proposer when put into transmission beyond the acceptor's power, and against the acceptor when it reaches the proposer's knowledge. Revocation is complete against its maker on the described transmission and against its recipient on knowledge.
Limits and related provisions
Do not merge these different viewpoints into a single rule that every message is effective merely on sending. The statutory postal illustrations explain their facts; modern communication channels, agreed terms and other applicable law need separate assessment. Section 5 uses these completion points to define the revocation cut-off.
Hypothetical business example
Hypothetical: a postal acceptance and a withdrawal cross in transit. The parties identify which party seeks to revoke, the dispatch and knowledge times and the Section 5 cut-off, rather than treating the first timestamp as universally decisive.
Practical decision flow
Classify each communication as proposal, acceptance or revocation.
Record transmission, loss of sender control and recipient knowledge separately with supporting evidence.
Apply the correct party-specific completion rule and then the relevant revocation or contract-formation provision.
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
- Classify each communication as proposal, acceptance or revocation.
- Record transmission, loss of sender control and recipient knowledge separately with supporting evidence.
- Apply the correct party-specific completion rule and then the relevant revocation or contract-formation provision.
Avoid
- Do not merge these different viewpoints into a single rule that every message is effective merely on sending. The statutory postal illustrations explain their facts; modern communication channels, agreed terms and other applicable law need separate assessment. Section 5 uses these completion points to define the revocation cut-off.
Glossary
- Against the proposer
- The statutory viewpoint for determining completion of acceptance in relation to the person who proposed.
- Knowledge of the recipient
- The point at which the relevant communication comes to the recipient's knowledge under the specified limb.
Frequently asked questions
Is a proposal complete on dispatch?
The central text says its communication is complete when it comes to the recipient's knowledge.
Does acceptance have the same completion point for both parties?
No. Section 4 distinguishes completion against the proposer from completion against the acceptor.
Can the postal illustrations automatically decide every online transaction?
Do not assume so. The channel, agreement and other applicable electronic-transaction law need to be considered.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026