Notice of Revocation: Section 6 of The Indian Contract Act, 1872 Lays Down The Methods by Which
Notice of Revocation: Section 6 of The Indian Contract Act, 1872 Lays Down The Methods by Which
Notice of Revocation: Section 6 of The Indian Contract Act, 1872 Lays Down The Methods by Which
Section 6 of the Indian Contract Act, 1872 lays down the methods by which
a revocation of proposal is made. This article deals with the methodologies
that are prescribed by the Indian Contract Act, 1872 by which revocation can
be put to practice. The following methodologies are mentioned below.
Notice of Revocation
First method is revocation of a proposal by communication of notice. A
proposal/offer may be revoked by the proposer/offeror by giving notice to
the offeree before it is accepted. Notice of revocation will take effect when it
is in the knowledge of the offeree before the communication of acceptance.
Lapse of Time
Second method is revocation of proposal by lapse of time period. If there is a
time period prescribed for acceptance, then the proposal gets revoked if the
acceptance is not communicated before expiry of the prescribed time period.
Under English Law, a proposal can be revoked even after acceptance by the
offeree if the acceptance is made in ignorance of fact about the proposer’s
death or insanity.
For Example: Ali by letter offers his car to Haider for INR 3,00,000. Haider
rejects the offer of Ali, now Haider cannot revive it again as once the offer is
rejected it cannot be revived again.
Death of Offeree
Death of an offeree is also a way by which a proposal can be revoked. A
proposal which is communicated for acceptance can be revoked if the offeree
who has to communicate the acceptance is dead before the communication
of acceptance of proposal.
Counter Offer
A proposal is revoked if a counter offer is made to it. Offeree accepts the
proposal after modifications and variations in the original offer, then the
proposal made by the offeree is called a counter offer. The acceptance of
counter offer amounts to rejection of original offer.
Conclusion
The contracts are considered closed when the acceptance is communicated.
Putting letter of acceptance in course of transmission and the contract
completes. That is the reason that even when the revocation of proposal has
been communicated, the contract does not end as there was communication
of acceptance before revocation of proposal by the proposer.