Principle: Proposal (communication) + Acceptance (communication) + Consideration = Contract. The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.

Facts: X's nephew absconded from home. He sent his servant in search of the boy. After the servant had left, X by handbills offered to pay Rs. 501 to anybody finding his nephew. The servant came to know of this offer only after he had already traced the missing child. He, therefore, brought an action to recover the reward.