Essay on Communication of Offer, Acceptance and Revocation

ADVERTISEMENTS:

We have already seen in the earlier part of this chapter that an offer in order to be binding must be communicated. Similarly, acceptance of an offer should also be communicated.

Communication of Offer :

Communication of an offer is complete as soon as it comes to the knowledge of the person to whom it is made.

ADVERTISEMENTS:

Examples:

A and B are sitting together. A offers his scooter for Rs. 5,000 to B. reach the ears of B, the offer of A is complete.

A of Agra by a letter to M of Mumbai offers his scooter for Rs. containing the offer on 9th January. This letter reaches M at Mumbai is complete on 11th January.

Communication of Acceptance :

ADVERTISEMENTS:

It has two parts:

(a) As against the proposer:

Communication of acceptance is complete as against the proposer when it is put in a course of transmission so as to be out of the power of the acceptor. For example, when it is posted in the letter box, duly stamped and addressed. B posts his acceptance on 12th January which reaches A on 14th January. Communication of acceptance as against A is complete on 12th January.

(b) As against the acceptor:

ADVERTISEMENTS:

Communication of acceptance is complete as against the acceptor when it comes to the knowledge of the poposer, i.e., when he receives the latter. In the above example, it is complete against B on 14th January.

Revocation of Offer and Acceptance :

Revocation means withdrawing or taking back the offer or acceptance.

Revocation of an offer or Proposal:

ADVERTISEMENTS:

According to Sec. 5, an offer may be revoked at any time before the communication of its acceptance is complete as against the proposer and not afterwards.

In our illustration above, the offer can be revoked by A at any time before or at the moment B posts his letter of acceptance in the letter box i.e., before 12th January and not afterwards.

Revocation of Acceptance :

According to Sec. 5, an acceptance can be revoked at any time before the communication of acceptance is complete as against the acceptor and not afterwards.

ADVERTISEMENTS:

Continuing our above illustration, B may revoke his acceptance at any time before the letter of acceptance reaches A i.e., before 14th January.

Communication of revocation of offer and acceptance is also necessary, otherwise it will not be effective.

Communication of Revocation :

The communication of revocation is complete:

(i) As against the person who makes it when it is put into the course of transmission to the person to whom it is made so as to be out of the power of the person who makes it.

(ii) As against the person to whom it is made when it comes to his knowledge.

Example:

A offers his car to B for Rs. 10,000 by a letter which he posts on 10th March. B receives this letter on 12th March. A revokes his offer by a telegram which he sends on 10th March. This telegram reaches B on 11th March.

Communication of revocation as against A is complete when he sent the telegram i.e. on 10th March. Communication of revocation as against B is complete when it reached A i.e. on 11th March.

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