Court caseAIR 1966 SC 543

The plaintiffs at Ahmedabad offered by telephone to buy cotton seed cake from the defendants at Khamgaon, who accepted over the telephone. The plaintiffs sued at Ahmedabad, and the question was whether the Ahmedabad court had jurisdiction, which depended on where the contract was made.

The majority held that the rule in section 4 about acceptance by post is an exception for non-instantaneous communication. In a conversation by telephone the parties are in the position of persons speaking face to face: the contract is complete only when the acceptance is heard by the offeror, and is made at the place where it is heard - Ahmedabad. Hidayatullah J dissented, reading section 4 literally.