Revocation of Proposal.pptx

it's an contractual act proposed in 1872.

1. Revocation of Proposal Prepared by: Hana Makwana(22MCLT05) Takshal Prajapati(22MCTL13) Rudrik Raval (22MCLT14)

2. REVOCATION IN LAW OF CONTRACT REVOCATION is an annulment or cancellation of statement or agreement. In the context of contracts , revocation may refer to cancelling of an offer.

3. According to the contract act, 1872 A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.  An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.

4. Illustration of revocation of proposal A proposes, by a letter sent by post, to sell his house to B.  B accepts the proposal by a letter sent by post.  A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance, but not afterwards.  B may revoke his acceptance as any time before or at the moment when the letter communicating it reaches A, but not afterwards.

5. When revocation happens a privilege, title or status is removed or taken away from someone. For example: If the library revokes your library card you can no longer take out library books, or if the lawyer breaks the law, it could revoke his license to practice law.

6. Revocation can be done by : Mutual cancellation of the contract by parties to it. Withdrawing an offer before it is accepted. Cancelling a document before it has come into legal effect or been acted upon. To recall a power or authority previously given as cancelling a power of attorney or cancelling a driver’s license due to traffic offenses.

7. Modes of revocation 1). Notice of revocation In this case, revocation has to be made before the acceptance. The communication of revocation to be effective must reach the offeree before he mails  his acceptance  and makes it out of his power. A revocation is effective only when it is brought to the mind of the person  to whom the offer is made.

8. 2). Lapse of time Where an offer says that it shall remain open for acceptance up to a certain date, it has to be accepted within that date. It has been suggested by the Calcutta High Court that in such a case it is enough if the acceptor has “posted the acceptance before the stipulated time”, even if it reaches the offerer after the stipulated date.

9. 3). Failure to accept condition precedent Where some preconditions are there for an offer before the acceptance is made, it lapses if acceptance is made without fulfillment of the particular condition precedent. 

10. 4). By death or insanity of the offerer An offer lapse on the death or insanity of the offeror, provided that the fact comes to the knowledge of the offeree before he makes his acceptance

11. Conclusion Thus, The Indian Contract Act, 1872 not only provide provisions to enter into the contract but it also provide provisions for the termination of a contract which is entered into by the parties. The provisions and rules of revocation are laid down under section 5 and modes of revocation in section 6 of this respective Act.  Overall revocation means “taking back” or it is called as a way of termination of an offer.

12. Thank You