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'A' applied for allotment of 100 shares in 'B' company. A letter of allotment addressed to 'A' was…

Under Section 4 of the Indian Contract Act, communication of acceptance is complete against the proposer as soon as the letter of allotment is posted and put out of the…

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'A' applied for allotment of 100 shares in 'B' company. A letter of allotment addressed to 'A' was posted in due time, but it never reached 'A'. The posting of letter of allotment :

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Correct answer A

Under Section 4 of the Indian Contract Act, communication of acceptance is complete against the proposer as soon as the letter of allotment is posted and put out of the acceptor's control, so, following Household Fire Insurance Co. v. Grant, the posting "completes the contract" even though the letter never reaches A.

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