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The revocation is complete as against A when the telegram is dispatched. 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 dispatched, and as against A when it reaches him.

5. Revocation of Proposals and acceptance. -- A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.

7. The Contract Act does not expressly deal with the place where a contract is made. Sections 3 and 4 of the Contract Act deal with the communication, acceptance and revocation of proposals. By S. 3 the communication of a proposal, acceptance of a proposal, and revocation of a proposal and acceptance, 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. Section 4 provides:
as against the person to whom it is made, when it comes to his knowledge".

In terms S. 4 deals not with the place, but with the completion of communication of a proposal, acceptance and revocation. In determining the place where a contract takes place, the interpretation clauses in S. 2 which largely incorporate the substantive law of contract must be taken into account. A person signifying to the other his willingness to do or abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence is said to make a proposal: Clause (e). When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted, becomes a promise : Cl. (b) and every promise and every set of promises, forming the consideration for each other is an agreement: Cl. (e). An agreement enforceable at law is a contract: Cl. (k). By the second clause of S. 4 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. This implies that where communication of an acceptance is made and it is put in a course of transmission to the proposer, the acceptance is complete as against the proposer: as against the acceptor it becomes complete when it comes to the knowledge of the proposer. In the matter of the communication of revocation it is provided that as against the person who makes the revocation it becomes complete 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 and as against the person to whom it is made when it comes to his knowledge. But S. 4 does not imply that the contract is made qua the proposer at one place and qua the acceptor at another place. The contract becomes complete as soon as the acceptance is made by the acceptor and unless otherwise agreed expressly or by necessary implication by the adoption of a special method of intimation. When the acceptance of offer is intimated to the offeror.

11. In Baroda Oil Cakes Traders v. Parshottam Narayandas Bagulia and Another, , a Division Bench of that Court, by reference to Section 4 of the Indian Contract Act, opined that "the communication of an acceptance is complete against the proposer when it is put in the course of transmission to him, so as to be out of the power of the acceptor. This necessarily means that as soon as the acceptance is posted or sent by telegram....... the acceptance is complete against the proposer, and so far as he is concerned the contract is concluded. It is true that in a sense the act of acceptance is a continuous act and it becomes complete so as to bind the acceptor when the acceptance comes to the knowledge of the proposer. But so far as the making of the contract is concerned, the proposer is bound as soon as the acceptance is posted and, subject to the right of the acceptor to revoke his acceptance, the contract is completed as soon as the acceptance is posted. In other words, the communication of the acceptance to the proposer cannot be said to be such an integral part of the completion of the contract as to constitute a part of cause of action in a suit on the said contract. Even if the acceptance does not reach the proposer for the reason that it is lost or misplaced in transit, the contract would be complete and for its breach the proposer would be entitled to sue for damages." As I see it with all respect to Hon'ble Division Bench, it is Section 5 (and not the preceding one) which determines the point and place at which the contract comes into existence. It stipulates that the proposal can be revoked till such time as its acceptance is not complete as envisaged in the preceding Section. Section 5 further accepts and preserves right of the acceptor to revoke his acceptance at any time before the acceptance reaches the proposer. If this right of revocation can be enjoyed and exercised by he acceptor, it is certainly arguable that the contract comes into being only once the acceptance reaches the proposer.