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:

Solution (By Examveda Team)

Relevant Principle under Indian Contract Act

Section 4 of the Indian Contract Act states that the communication of 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.

Application to the Case

Here, 'A' applied for allotment of 100 shares. This application amounts to an offer by 'A'.

When 'B' company posts the letter of allotment, it amounts to acceptance of the offer made by 'A'.

As per the law, the contract is complete at the moment the letter of allotment is properly posted, even if it never actually reaches 'A'.

Why the Other Options are Incorrect

Option B is incorrect because non-receipt of the letter does not affect the completion of the contract once acceptance is posted.

Option C is incorrect because there is no ground here that makes the contract voidable; both parties have fulfilled their legal obligations of offer and acceptance.

Option D is incorrect because a contract is not void simply because the communication did not reach the proposer; the law protects acceptance once posted.

Conclusion

Thus, the posting of the letter of allotment completes the contract, irrespective of its non-receipt by 'A'.

Correct Answer: Option A