Revocation of an Offer

Sociology | Mercantile Law | International Law | International Relations

Revocation means “cancellation”.That is offerer cancelled (revoked) the offer before the acceptance of offeree.

Communication of Revocation
The communication of revocation is complete – as against the person who makes it, when it is put into a 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, as against the person to whom it is made, when it comes to his knowledge.

Modes of Revocation of an offer
Sec.6 of Contract Act deals with various modes of revocation of an offer. In all these cases offer comes to an end.

  1. Revocation of offer by communication of notice by offerer to offeree before acceptance.
  2. Revocation by lapse of time.
    For example, college stipulated March 18 to accpet the offer, and Bilal could not send acceptance letter till March 18. The offer is revoked.
  3. Revocation by failure to fulfil a condition precedent to acceptance. For example, Bilal agrees to sell his house to Anas if he pays half of the price till March 11. Anas could not pay, the offer is revoked.
  4. Revocation by death or insanity of the offerer
  5. Revocation by cross offer.
    For example, Bilal agrees to sell his house to Anas for Rs.500,000. Anas replied I will buy it for Rs.475,000. The offer from Bilal is revoked by this counter offer.
  6. Revocation by failure to accept according to the prescribed mode.

Rejection of offer by the offeree
Offeree may be reject the offer. Once he has rejected, he cannot subsequently accept it.

Rejection may be expressed or implied

  • Express: by words spoken or written
  • Implied: by counter offer or conditional offer

Rules governing the procedure of revocation of offer by the offeree

  1. Offeree can revoke the offer at any time before the communication of its acceptance is complete as against the offerer but not afterwards.
  2. Revocation takes place when it is actually communicated to the offeree.

Rules governing the procedure of revocation of offer by the offerer

  1. Offerer can revoke the offer at any time before the offer is accepted by the offeree.
  2. If offerer has agreed to keep the offer open for a certain period, he can revoke it before expiration period if there is no consideration for keeping the offer open.

IMPORTANT

  • Once the offer revoked, there cannot be subsequent acceptance.
  • Once the offer accepted, there cannot be subsequent revocation.