Communication when Complete: Indian Contract Act

Communication is one of the most essential elements in personal life as well as in professional life. Likewise, in context of a legal agreement or contract, some message must be exchanged between the two parties, if both the parties agree harmoniously, then agreement will form.

What is Communication?

Communication, technically, is the process through which an individual conveys an information, ideas, thoughts, feelings, and emotions with other individuals or groups. It can be performed through speech, writing, sign language, or other media. It helps people share their perspectives, convey messages, build understanding with one another, and assists in building business relationship through valid contract. So, effective communication is an essential aspect of personal and professional life and plays a crucial role in building personal and professional relationships, making decisions, and achieving common goals.

What does Exactly “Communication When Complete” Define?

Section 4 of the Indian Contract Act, 1872 defines the provision of “communication when complete” and states that

“The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.”

It means, it is believed that the communication of an acceptance is completed, as against the proposer, once it is put in a course of transmission to him or her, and now, it is out of the power of the acceptor, as against the acceptor, when it comes to the knowledge of the proposer.

Furthermore, 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.

Likewise, this clause guarantees that both parties are well informed about the contractual agreement and are able to take the appropriate action to end the arrangement. Additionally, it can be used to verify that the conditions have been met and to offer documentation of the contract's successful conclusion.

Objective of “Communication when Complete” Clause

This provision's objective is to guarantee that both parties are informed of the completion of the contract and are able to take the appropriate actions to bring the agreement to a satisfactory conclusion. In addition to this, it can be utilised to offer evidence that the conditions of the contract have been met and to act as a record of the conclusion of the transaction. This phrase is particularly significant in more complicated contracts, where several tasks or obligations must be accomplished by each party before the contract can be considered to have been satisfied in its whole.

When the conditions of the contract have been satisfied, the "communication when complete" clause normally requires one party to notify the other party verbally, in writing, either by mailing, emailing, or faxing the notification to the appropriate party. This notification needs to be issued within the allotted amount of time, which is typically just a few days after the task is finished. In the notification, it ought to be made abundantly apparent that each and every stipulation of the contract has been satisfied, and that the agreement itself has been finalised.

Benefits of “Communication when Complete” Clause

The language in a contract that states "communication when complete" provides various benefits to both parties, including the following −

Clarity

It gives information that is clear and simple regarding the requirements for notification of completion and any evidence that must be submitted, so lowering the possibility of misunderstandings or disputes occurring.

Evidence

Providing protection in the event of a dispute and serving as evidence of completion, the written notification of completion serves as evidence that the contract has been fulfilled in its entirety.

Satisfaction

Peace of mind for both parties is provided by the notification of completion, which serves as confirmation that all of the requirements of the contract have been met.

Enhanced communication

The necessity of providing notification of completion encourages and facilitates regular communication between the parties, which assists in maintaining the integrity of the contract.

Protection against non-performance

The notification of completion gives evidence of the completion of the contract, which can be helpful in legal actions in the event that one party fails to perform its obligations.

An improved method of record keeping is provided by the written notification of completion, which serves as a record of the conclusion of the contract. This record can be helpful for future reference or in the event of a dispute.

Conclusion

To summarise, the "communication when complete" clause is a significant provision in a contract that outlines the obligation of the parties to formally notify each other once all of the terms of the agreement have been fulfilled. This provision is an important part of a contract because it outlines the obligation of the parties to fulfil the terms of the agreement. This clause serves numerous key reasons, including enhancing communication between the parties, giving evidence of completion in the event of a dispute, and confirming that the requirements outlined in the contract have been satisfied.

Both parties will experience better peace of mind as a result of this clause's benefits, which include improved clarity and record keeping, protection against non-performance, and protection against liability. It is important for the parties to carefully review the "communication when complete" clause in their contract to ensure that it accurately reflects their understanding of the agreement and to take any steps necessary to negotiate changes if it is not clear. It is also important for the parties to make sure that the "communication when complete" clause accurately reflects their understanding of the agreement.

In a nutshell, the "communication when complete" clause plays an essential part in guaranteeing the proper fulfilment of a contract and in safeguarding the rights of both parties.

FAQs

Q1. What exactly is the function of the provision in a contract that states "communication when complete"?

Ans. The provision that states "communication when complete" exists for the aim of ensuring that both parties are aware of the completion of the contract and are able to take the appropriate actions to bring the agreement to a satisfactory conclusion. In addition to this, it offers a record of the contract's successful conclusion and verifies that all of the requirements have been met.

Q2. In a phrase that states "communication when complete," what kinds of evidence are normally expected?

Ans. The phrase that states "communication when complete" may demand the parties to present evidence that the communication has been completed, such as a written agreement, an invoice, or a certificate of completion.

Q3. What consequences are there for violating the terms of the contract by one of the parties?

Ans. If one of the parties to the contract does not satisfy the conditions of the agreement, the other party can use the written notification of completion as evidence in court to argue that the contract has been fulfilled despite the breach of the agreement by the first party.