Modes of Revocation of Offer under the Indian Contract Act
The Indian Contract Act 1872 lays down the rules and regulations that govern the formation and execution of contracts in India. One of the key aspects of contract law is the revocation of an offer. An offer is the first step in the formation of a contract. An offer is a proposal made by one party to another, indicating their willingness to enter into a legally binding agreement. In this article, we will discuss the various modes of revocation of offer under the Indian Contract Act.
1. Revocation by the offeror before acceptance
The offeror has the right to revoke an offer before it is accepted. The revocation can be communicated to the offeree either orally or in writing. It is important to note that the revocation of an offer must be communicated to the offeree. If the offeror does not communicate the revocation, then the offeree can still accept the offer.
2. Revocation by death or insanity of either party
If either the offeror or the offeree dies or becomes insane before the acceptance of the offer, then the offer is automatically revoked. The offer cannot be accepted once either party dies or becomes insane.
3. Lapse of time
An offer can be revoked if the offeree does not accept the offer within the specified time frame. If the offeror has specified a time limit for acceptance of the offer, and if the offeree fails to accept the offer within the specified time frame, then the offer is deemed to have lapsed. Once the offer has lapsed, it cannot be accepted.
4. Revocation by non-fulfillment of a condition
An offer can also be revoked if the offeree fails to fulfill a condition attached to the offer. For example, if an offer is made on the condition that the offeree must pay a certain amount of money within a specified time frame, and if the offeree fails to do so, then the offer stands revoked.
If the offeree makes a counteroffer, then the original offer is deemed to have been revoked. A counteroffer is a new offer made by the offeree, which is different from the original offer made by the offeror. Once a counteroffer is made, the original offer is no longer valid.
In conclusion, the revocation of an offer is a crucial aspect of contract law. It is essential for both parties to understand the modes of revocation of an offer to avoid any legal disputes in the future. As a professional, I hope this article has helped you understand the various modes of revocation of offer under the Indian Contract Act.