Revocation of Proposal and Offer| Free law notes

Revocation of Proposal and Offer- Prolawctor


The Indian Contract Act determines under Section 2 the definition of the word “contract” (h). According to the section, a contract is a law-enforceable arrangement. Thus, for the creation of a binding contract, there are two essentials to be fulfilled. Firstly, there should be an agreement between two or more contracting parties and, secondly, legal enforceability should be required for the agreement.


Revocation means “cancellation” and when the buyer accepts a nonconforming good from the seller, it is a kind of solution for buyers.

Revocation of proposal and offer.

Section 5 of the Indian Contract Act lays down the rules regulating the revocation and approval of proposals, i.e. A proposal can be withdrawn at any time until its approval is completely communicated to the proposer, but not afterwards. An acceptance can be withdrawn at any time until the acceptance is completely conveyed to the acceptor, but not afterwards.


 Ankit offers to sell his house to ravi in a letter sent by post, and ravi  accepts the proposal. In this case, at any time before or at the moment when ravi posts his letter of acceptance, but not afterwards, ankit can revoke his proposal. n And ravi can withdraw his acceptance at any time before, or at any time when, but not afterward, ankit posts his letter of acceptance.

Revocation Modes

Section 6: Revocation of how this section of the Indian Contract Act, 1872, is performed, offers different ways of revocation as follows:

  1. Notice of revocation

In this case, prior to the approval, revocation has to be made. To be successful, the correspondence of revocation must enter the offeree before he mails his approval and removes it from his control. A revocation is only successful when it is brought to the mind of the person to whom the offer is made.

Case laws

Unfortunately, in Ramlalsao Gupta v. M.E.R. Malak, the letter of revocation was reached at the wrong address and it was submitted by fax earlier. The court found that the same had no impact.

  1. Time lapse

If an offer specifies that it will remain available for acceptance until a certain date, it must be accepted by that date. The Calcutta High Court has indicated that it is appropriate in such a case if the acceptor has “posted the acceptance before the specified time” even if it reaches the bidder after the specified date. If an offer was to last until the end of March and 28 March, the offeree sent a telegram to accept the offer, but the offeror received the same telegram on 30 March. The court found the acceptance to be true.

  1. By failure to accept condition precedent

If there are any preconditions for the offer before the acceptance is made, if acceptance is made without complying with the precedent of the relevant condition, it lapses.

In the case of State of West Bengal v. Mahendra Chandra Das, a salt lake was given by way of lease on condition that the amount of money was not deposited on deposit of a sum of money with a defined period but the defendant even after the expiry of the specified time. The court held that the cancellation of the allotment included this. The amount of money was not deposited at the end of the specified time.

(4) By death or insanity of offer

An offer lapse on the offeror’s death or insanity, given that the truth comes to the offeree’s attention before he allows his acceptance.

Case laws

In the case of Dickinson v. Dodds, MELISH LJ indicated that a bid should not be accepted after the supplier’s death. Earlier in the case of Bradbury v. Morgan, the creditor continued to operate on a promise without the knowledge of the surity’s death. The court held that an offer is not actually terminated with the death of the offeror and the same will open before the offeree comes to know the offeror’s death.


The Contract Act is the country’s primary law that discusses the contractual obligations between the parties. Not only the provisions relating to the completion of the contract, but also the provisions relating to the termination of the contract entered into by the parties are included in the Act.

The parties to the contract are free to withdraw both the bid and the Under the Contract Act, Section 5. A means of terminating the bid is revocation. There are three ways to cancel a bid, three of which are the revocation, denial or lapse of the offer. approval of the contract at a later date. The process and the revocation rules are laid down.



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