Legal Principle: A contract requires a proposal and an acceptance of the proposal. It is necessary to make a binding contract, not only that the proposal be accepted, but also that the acceptance is notified to the proposer. Factual Situation: Mr A is a merchant of Delhi. He sends his son B to Mumbai with a letter addressed to a merchant of Mumbai. B hands over the letter to C and keeps waiting there. C reads the letter which contains an offer from A for sale of certain quantity of rice. The letter also contains that if C accepts the offer, then he must give his reply to B. C sends B without any reply, but later decides to accept A’s offer by telegram. The telegram reaches A before B returns. Issue: Has a valid contract come into existence? Decision: