Lapse of an offer

REVOCATION OF ACCEPTANCE
CONTRACT LAW

1. LAW OF CONTRACT

LAPSE OF AN OFFER

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2. WHAT IS REVOCATION?

> Revocation is an act of annulment or making the contract
void.

> When an offer is revoked, the offer does not stand anymore
for the acceptor to agree upon. This causes lapse of the offer.

> An offer can be revoked any time before the communication
of acceptance is complete.

3. METHODS OF REVOCATION (LAPSE OF OFFER)

> A proposal can be revoked by the following methods:

> By communication of notice of revocation by the proposer to
the other party.

> By the lapse of time period prescribed in such proposal for
its acceptance, or if no time is prescribed, by the lapse of
reasonable time, without the communication of acceptance.

> By the failure of acceptor to fulfill a condition precedent to
acceptance.

> By the death or insanity of the proposer.

4. REVOCATION OF PROPOSALS

> A proposal may be revoked at any time before the
communication of its acceptance is complete against the
proposer, but not afterwards.

> The proposer can revoke the proposal any time before he has
received the notice of acceptance by the acceptor.

5. REVOCATION OF ACCEPTANCE
> An acceptance can be revoked any time before the letter of
acceptance has been delivered to the proposer.

> Since the acceptor is not bound immediately on posting the
letter of acceptance, he is free to revoke the acceptance by
adopting a speedier mode of communication.

> Ifthe letter of revocation reaches the proposer before the
letter of acceptance, the offer will stand

6. ILLUSTRATION 1 (BY COMMUNICATION OF NOTICE)

> A proposes by a letter sent by post to sell his house to B.
> B accepts the proposal by a letter sent by post.

> B may revoke his acceptance any time before the letter of
communication reaches A, but not afterwards.

7. ILLUSTRATION 2 (BY FAILURE TO FULFILL A CONDITION PRECEDENT TO ACCEPTANCE)

> Mr. A proposes to rent his flat to Mr. B at monthly rent of Rs.
10,000 with the condition to pay 25,000 as a security deposit
in advance within 10 days of acceptance.

> Mr. B accepts the proposal but fails to pay the deposit within
prescribed time.

> The offer will stand revoked as the condition is not fulfilled.