Notes on rules of acceptance and revocation in contract act 1872
Answers
ANSWER:-
Term ‘signifies’ in Section 2 (a) means that the proposal must be communicated to the other party, (section 3). A valid proposal may be made by words (written or spoken) or by conduct (section 9). i.e., it may be express or implied. For example, a writes to B to purchase 100 tons of a good, at a certain price. B accepts A’s offer by writing a letter. This will be an express offer. But when a person boards a DTC bus an implied contract is formed between him and DTC. Here there is implied promise to pay for benefits enjoyed. Similarly a bid at an auction is an implied offer to buy.
An offer must be made with an intention to create legal obligation. If it does not create legal obligation then it is not a valid offer as held in the case of Balfour v. Balfour ( 1919) 2 KB 571
The term of the offer must be certain and not vague. Agreements, the meaning of which are not certain, or capable of being made certain, are void (section 29). A agrees to sell B “100 tons of oil”. There is nothing whatsoever to show what kind of oil was intended. The agreement is void for uncertainty. But if A agrees to sell B all the grain in his granary at Ramnagar, then the agreement is valid.
Communication of offer- Section 4 of the Act, “The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.” An act in ignorance of an offer does not amount to acceptance of that offer.
Answer:
Modes of revocation of Offer
(i) By notice of revocation
(ii) By lapse of time: The time for acceptance can lapse if the acceptance is not given
within the specified time and where no time is specified, then within a reasonable
time.
(iii) By non-fulfillment of condition precedent: Where the acceptor fails to fulfill a
condition precedent to acceptance the proposal gets revoked.
(iv) By death or insanity: Death or insanity of the proposer would result in automatic
revocation of the proposal but only if the fact of death or insanity comes to the
knowledge of the acceptor.
(v) By counter offer
(vi) By the non- acceptance of the offer according to the prescribed or usual mode
(vii) By subsequent illegality.