Where is the place of contract considered to be when acceptance is communicated via letter or telegram?

A. As per Section 4 of the Contract Act 1872, there are two views regarding the place of contract when acceptance is communicated via letter or telegram:

Traditional View: The contract is made at the time and place where the letter of acceptance is posted. This implies that the contract is formed the moment the acceptance is sent.

Alternative View: The place of contract is where the acceptance is communicated to the offeror. According to this view, the post office is considered the agent of the sender, not the addressee. Therefore, acceptance becomes complete only at the place where it is communicated to the offeror.

This FAQ is prepared by Sadia Saman Advocate