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Topic 10: MODES OF REVOCATION OF OFFER

According to Section 6 of the Act, a proposal may be revoked in any of the following ways:
1. By notice of revocation: Offer may be revoked by a communication of a notice of revocation by the offeror to the other party before acceptance is complete against the offerer himself. A notice of revocation to be effective must be communicated to the offeree.
For example: At an auction sale, ‘A’ made the highest bid for ‘B’s goods. He withdrew the bid before the fall off the hammer. ‘B’ knocked down the goods in favour of ‘A’. ‘B’ sued ‘A’ for the price of goods. It was held that ‘A’s bid was no more than offer and he was entitle to withdraw the same before it was accepted.
2. By lapses of time: A proposal will come to an end by the lapse of time prescribed in such proposal for its acceptance or, if no time is so prescribed by the lapse of reasonable time.
For example: ‘D’ offered to sell wool to ‘H’ on Thursday and agreed to give him three days time to accept. ‘H’ accepted the offer on Monday, but by that time ‘D’ had sold the wool. It was held that the offer had lapsed.





3. By non-fulfillment of condition precedent: A proposal is revoked when the acceptor fails to fulfill a condition precedent to the acceptance of the proposal which was conditional offer.
For example: ‘X’ offer to sell certain goods to ‘Y’ on a condition that ‘Y’ pays a certain amount before a certain date. The proposal is revoked if ‘Y’ fails to pay the requested amount within given time.
4. By death or insanity: A proposal is revoked by the death or insanity of the proposer if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance.
For example: ‘A’ proposes by letter to sell a house to ‘B’ at a certain price. Before the letter reach ‘B’ heard that ‘A’ got into an accident and died. Thus offer is withdrawn.
5. By counter offer: An offer comes to an end when the offeree makes a counter offer or rejects the offer. Where an offer is accepted with some modification in the terms of the offer or with some other condition not forming part of the offer. Such qualified acceptance amounts to a counter offer. An offer once rejected cannot be revived.
For example: ‘A’ offers to sell his house to ‘B’ for Rs 1,000. ‘B’ replies offering to pay Rs. 970. ‘A’ refuses. Subsequently ‘B’ writes accepting the original offer has lapsed.





6. By the non-acceptance of the offer according to the prescribed or usual mode: The offer will also stand revoked if it has not been accepted according to the mode prescribed.
7. By subsequent illegality: An offer lapses if it becomes illegal after it is made and before it is accepted.
For example: An offer is made to sell 10 bags of wheat for Rs. 2,500 and before it is accepted, a law prohibiting the sale of wheat by private individuals is enacted, the offer comes to an end.



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