Assignment Submitted to Ms.Murugalakshmi.,M.Com.,M.Phil.,PGDCA., Department of Commerce, Ayya Nadar Janaki Ammal College, Sivakasi

1. BUSINESS LAW
AYYA NADAR JANAKI AMMAL COLLEGE(AUTONOMOUS),SIVAKASI
AUTONOMOUS, AFFILIATED TO MADURAI KAMARAJ UNIVERSITY, REACCREDITED (3RD CYCLE) WITH "A" GRADE (CGPA 3.67 OUT OF 4) BY NAAC,
COLLEGE OF EXCELLENCE BY UGC, STAR COLLEGE BY DBT AND RANKED 51 ST IN NIRF 2019. SIVAKASI - 626124.
BY
E.ABISAK DEV.,B.COM.

2. TOPIC:
COMMUNICATION OF OFFER AND
ACCEPTANCE AND REVOCATION OF
OFFER OF ACCEPTANCE

3. MEANING
According to section 4,
• The communication of an offer is complete when it comes to the
knowledge of the person to whom it is made
1. As against the proposer when it is put into a course of transmission to
him, so as to be out of the power of the acceptor.
2. As against the acceptor when it comes to the knowledge of the proposer.

4. EXAMPLE:
P offers to sell his flat to Q for Rs.15 lakhs. He sends his proposal by a letter posted on 5th January. The letter
reaches Q on 7th. The communication of offer ,in case , is complete on 7th, i.e., when Q receives the letter.
Q accepts P’s offer and sends his acceptance by a letter posted on 10th January and the same is received by P on
12th. The communication of acceptance now is complete, as against P, when the letter is posted , i.e., on 10th and
as against Q, when the letter is received by P, i.e., on 12 th.
Communication of acceptance is complete against the offeror as the letter of acceptance is posted . The
acceptance is valid even if the letter is lost in postal transit. But it is important that the letter of acceptance is
correctly addressed and sufficiently stamped.

5. MEANING
‘Revocation’ means ‘Withdrawal’. An offer or its acceptance may be revoked
subject to the following rules contained in Section 5:
A proposal may be revoked at anytime before the communication of its
acceptance is complete as against the proposer, but not afterwards.
An acceptance may be revoked at anytime before the communications of
the acceptance is complete against the acceptor, but not afterwards.
REVOCATION OF OFFER AND ACCEPTANCE

6. EXAMPLE:
M, by a letter posted on 1st June, offers to sell his car to N for
Rs.2 lakhs. The letter reaches on 3rd. N accepts the offer by
sending a letter posted on 5th. The letter reaches M on 7th.
M may withdraw his offer at anytime before 5th but not
afterwards, similarly N may withdraw his acceptance at any
time before 7th but not afterwards.

7. WHEN WILL AN OFFER LAPSE
1. Revocation
2. Lapse of Time
3. Failure of the Acceptor to fulfill a condition precedent to
acceptance
4. Death or insanity of the Offeror
5. Acceptance not as per prescribed mode
6. Change of law or Destruction of the subject matter
7. Rejection of offer by the offeree

8. WHEN WILL AN OFFER LAPSE?
An offer will lapse or come to an end under the following circumstances:
1. Revocation
2. Lapse of Time
3. Failure of the Acceptor to fulfill a condition precedent to acceptance
4. Death or insanity of the Offeror
5. Acceptance not as per prescribed mode
6. Change of law or Destruction of the subject matter
7. Rejection of offer by the offeree
REVOCATION OF OFFER AND ACCEPTANCE

9. 1. BY A NOTICE OF REVOCATION
The proposer may, by sending a notice of revocation to the offeree, withdraw
the proposal. But the notice of revocation must reach the offeree before he
conveys his acceptance.
REVOCATION OF OFFER AND ACCEPTANCE

10. 2. BY THE LAPSE OF TIME
The proposal stands revoked if it is not accepted within the time specified. If no
time is specified, the offer shall lapse on the expiry of a reasonable time
Case Law
Ramsgate Victoria Hotel Co. vs. Montefiore
REVOCATION OF OFFER AND ACCEPTANCE

11. 3. BY FAILURE OF THE ACCEPTOR TO FULFIL A
CONDITIONAL
S agrees to sell his bicycle to B for Rs.400 upon the condition that B makes full
payment within a day. B fails to pay the amount. The offer stands revoked.
REVOCATION OF OFFER AND ACCEPTANCE
Example:

12. 4. BY THE DEATH OR INSANITY OF THE PROPOSER
The offer stands revoked if the fact of death or insanity of the proposer
comes to the knowledge of the acceptor before acceptance.
REVOCATION OF OFFER AND ACCEPTANCE
Explanation:

13. 5. BY A COUNTER-OFFER
If the acceptor, instead of accepting the terms of the offeror in full, seeks
certain modifications and amendments in terms, it amounts to a counter-offer.
The original offer, in such a case, will lapse.
REVOCATION OF OFFER AND ACCEPTANCE
Explanation:

14. 6. BY THE OFFEREE NOT GIVING HIS ACCEPTANCE AS PER THE
PRESCRIBED MODE
When the offeree fails to accept the proposal as per the prescribed mode,
the offeror can revoke the offer not by keeping quiet but by informing the
offeree about the same.
REVOCATION OF OFFER AND ACCEPTANCE
Explanation:

15. 7. BY CHANGE OF LAW OR DESTRUCTION OF THE SUBJECT-MATTER:
2.P offers to sell his scooter to Q for Rs.10,000. the offer will come to an end if
the scooter is completely damaged in a accident.
REVOCATION OF OFFER AND ACCEPTANCE
Consideration:
1.An offer to make a bulk purchase of lottery tickets comes to an end the
moment the government imposes a ban on lotteries.

16. 8. BY THE REJECTION OF THE OFFER BY THE OFFEREE:
An offer comes to an end once it is rejected by the offeree. Rejection of offer
may be ‘express’ or ‘implied’.
Express rejection is in the form of words spoken or written. Making a
counter-offer by the offeree results in an implied rejection of the original offer.
REVOCATION OF OFFER AND ACCEPTANCE
Explanation:

17. THANK YOU!