Revocation

sujith
• Revocation means "cancellation". Revocation
of an offer means its withdrawal by the
offeror.
• An offer may be revoked at any time before
the offeree accepts it.
• Revocation of an offer after acceptance will be
ineffective. If it is to be effective, it must be
communicated before the dispatch of the
letter of acceptance.
• Section 5 lays down "a proposal may be
revoked at any time before the
communication of its acceptance as against
the proposer". An offer is made irrevocable by
acceptance. Revocation may be express or
implied.
For example, Mr. Mukesh Amabni proposes to
Mr. Ratan Tata that he will sell his bajaj
scooter. Mr. Ambani can revoke his offer
before Mr. Tata posts his letter of acceptance.
• Modes of revocation:
Section 6 describes various modes of revocation of offer.
An offer may be revoked in any of the following ways;
• 1. By communication of notice:
An offer may be revoked by the offeror by giving a notice of
revocation to the other party before it is accepted. Notice
of revocation will take effect only when it comes to the
knowledge of the offeree.
For example, Mr. Anil Ambani offers his house to Mr. Sujith
for Rs.10000. Before Sujith accepted the offer, Anil
withdrew his offer by informing Sujith. There will be no
contract as the offer has been revoked before its
acceptance.
• 2. By lapse of time:
If time is prescribed for acceptance, the offer gets
revoked by non-acceptance within that time. If no
time is fixed, the offer lapses by the expiry of a
reasonable time.
• Mukesh applied for shares on 1st June. But
shares were allotted on 1st November. Mukesh
therefore, refused to take the shares.
• The Court held that Mukesh was entitled to
refuse as the offer had lapsed by delay in
acceptance.
• 4. By death or insanity of the offeror:
An offer is revoked by the death or insanity of
the offeror, if the fact of his death or insanity
of the offeror, if the fact of his death or
insanity comes to the knowledge of the
acceptor before acceptance.
Under English Law, death of the offeror
revokes an offer even if acceptance is made in
ignorance of the death.
• 5. By counter-offer:
An offer is revoked if a counter-offer is made
to it.
For example, A offers his watch to B for
Rs.500. B instead of saying yes, offers only
Rs.350. A's offer is revoked and there is no
contract.
• 6. By failure to accept in the mode prescribed:
An offer must be accepted according to the mode
prescribed. If no mode is prescribed, the
acceptance must be according to some usual or
reasonable mode. If the offer is not accepted
according to the prescribed or usual mode, the
offer lapses provided the offeror gives notice to
the offeree within a reasonable time that the
acceptance is not according to the mode
prescribed. If the offeror fails to do so, he is
deemed to have accepted the acceptance.