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  1. 1. Revocation sujith
  2. 2. • Revocation means "cancellation". Revocation of an offer means its withdrawal by the offeror. • An offer may be revoked at any time before the offeree accepts it. • Revocation of an offer after acceptance will be ineffective. If it is to be effective, it must be communicated before the dispatch of the letter of acceptance.
  3. 3. • Section 5 lays down "a proposal may be revoked at any time before the communication of its acceptance as against the proposer". An offer is made irrevocable by acceptance. Revocation may be express or implied. For example, Mr. Mukesh Amabni proposes to Mr. Ratan Tata that he will sell his bajaj scooter. Mr. Ambani can revoke his offer before Mr. Tata posts his letter of acceptance.
  4. 4. • Modes of revocation: Section 6 describes various modes of revocation of offer. An offer may be revoked in any of the following ways; • 1. By communication of notice: An offer may be revoked by the offeror by giving a notice of revocation to the other party before it is accepted. Notice of revocation will take effect only when it comes to the knowledge of the offeree. For example, Mr. Anil Ambani offers his house to Mr. Sujith for Rs.10000. Before Sujith accepted the offer, Anil withdrew his offer by informing Sujith. There will be no contract as the offer has been revoked before its acceptance.
  5. 5. • 2. By lapse of time: If time is prescribed for acceptance, the offer gets revoked by non-acceptance within that time. If no time is fixed, the offer lapses by the expiry of a reasonable time. • Mukesh applied for shares on 1st June. But shares were allotted on 1st November. Mukesh therefore, refused to take the shares. • The Court held that Mukesh was entitled to refuse as the offer had lapsed by delay in acceptance.
  6. 6. • 4. By death or insanity of the offeror: An offer is revoked by the death or insanity of the offeror, if the fact of his death or insanity of the offeror, if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance. Under English Law, death of the offeror revokes an offer even if acceptance is made in ignorance of the death.
  7. 7. • 5. By counter-offer: An offer is revoked if a counter-offer is made to it. For example, A offers his watch to B for Rs.500. B instead of saying yes, offers only Rs.350. A's offer is revoked and there is no contract.
  8. 8. • 6. By failure to accept in the mode prescribed: An offer must be accepted according to the mode prescribed. If no mode is prescribed, the acceptance must be according to some usual or reasonable mode. If the offer is not accepted according to the prescribed or usual mode, the offer lapses provided the offeror gives notice to the offeree within a reasonable time that the acceptance is not according to the mode prescribed. If the offeror fails to do so, he is deemed to have accepted the acceptance.