Time during which an Offer or Acceptance can be Revoked
By the Indian Contract Act 1872, the criteria that are defined in Sections 5 and Section 6 are responsible for determining the period within which an offer or acceptance may be overturned. When it comes to the revocation of an offer or acceptance, the following are the most important points:
1. Revocation of Offer (Section 5): The offeror has the right to withdraw the offer at any time before the completion of the message of acceptance as against the offeror. This indicates that the offeror can withdraw the offer as long as the offeree has not acknowledged their acceptance of the invitation.
2. Revocation by Notice: The offeree must be informed of the revocation of an offer before it may be considered effective. Whenever it gets to the awareness of the person who is being offered, it becomes effective. The communication of the revocation needs to be carried out in the same way as the communication of the offer, or in a manner that may be reasonably anticipated to reach the offeree.
3. Time of Lapse: If the offer does not include a period that is stated for acceptance, the offeror has the right to withdraw the offer at any time before the acceptance is conveyed. If, on the other hand, the offer specifies a certain time, then the offer will continue to be valid until the specified period has passed.
4. Exception of Unilateral Contract: In the event of a unilateral contract, in which acceptance is achieved by performance, the offeror is not permitted to retract the offer after the offeree has begun the performance. This is an exception to the general rule. Up until the point when the performance is over, the offer will stay available.
5. Communication of Revocation to Third Parties: If the offeror has made the offer to a specific individual and that individual is unaware of the revocation, a third party may legitimately accept the offer until the offeror communicates the revocation to the individual to whom the offer was created.
It is essential to remember that for a contract to be established, acceptance must be conveyed to the person who made the offer; i.e., the offeror. As a result, the revocation of acceptance becomes effective once it reaches the offeror. To prevent misunderstandings and disagreements in the context of contractual relationships, the parties involved should keep these rules in mind.
Communication of Offer, Acceptance and Revocation
When it comes to the field of contract law, efficient communication is a fundamental component that determines the process of forming, accepting, and rescinding offers. In 1872, the Indian Contract Act was created, which offers a thorough foundation for comprehending the dynamics of communication within contractual relationships. To shed light on the intricacies that drive these essential components of contract formation in India, this essay dives into the fundamental concepts that underline the communication of offer, acceptance, and revocation.
A clear and definite offer is required under Section 2(a), which states that “An offer must be able to create a legally enforceable agreement and must be clear and definite. Uncertainty and the possibility of disagreements might result from terminology that is ambiguous or vague.”
Geeky Takeaways:
- When contracting parties are face to face and negotiate in person, there is an instantaneous communication of offer and acceptance which gives rise to a valid contract.
- A valid contract comes into existence when the moment the offeree gives his absolute and unqualified acceptance to the proposal made by the offeror.
- The question of revocation does not arise in cases where an offer is made and accepted instantly at the same time.
- Thus, communication plays an important role in the Indian Contract Act, 1872.
Table of Content
- Communication of an Offer
- Legal Rules for Communication under the Act
- Communication of an Acceptance
- Communication of Revocation
- Time during which an Offer or Acceptance can be Revoked
- Effect of Delay or Loss of Letter of Acceptance in Postal Transit
- Accidental Formation of a Contract
- Contracts over the Telephone
- Conclusion
- Frequently Asked Questions (FAQs)