INDIAN CONTRACT ACT,1872

LECTURE OUTCOME
• Categorizing and Illustrating how offer and acceptance can
communicate and how it can be revoked.
 MODES OF ACCEPTANCE
• Communication by any act
It include any expression of words whether written or oral. Written words will
include letters, telegrams, faxes, emails and even advertisements. Oral words
will include telephone messages.

• Communication of acceptance by ‘omission’ to do something

Eg.: A offers ₹50000 to B if he does not arrive before the court of law as an
evidence to the case. B does not arrive on the date of hearing to the court. Here
omission of doing an act amounts to acceptance.
 COMMUNICATION OF OFFER
“the communication of offer is complete when it comes to
the knowledge of the person to whom it is made”
– Section 4 of the Indian Contract Act

As against the proposer, when it is put in the course of

transmission to him so as to be out of the power of the acceptor
As against the acceptor, when it comes to the knowledge of the
proposer.
 REVOCATION OF OFFER AND ACCEPTANCE
• Revocation of offer: An offer may be revoked at any time
before the communication of acceptance is completed as
against the offeror but not afterwards.

• Revocation of acceptance: Any acceptance may be revoked at

any time before the communication of acceptance is completed
as against the acceptance, but not afterwards.
 HOW AN OFFER IS REVOKED [SECTION 6]
• Revocation by notice.
• Revocation by lapse of time.
• Revocation by the death of proposer.
• Revocation by the insanity of proposer.
• Revocation by counter offer.
• Revocation by not accepting the offer in the mode prescribed.
• Revocation by failure of the acceptor to fulfill a condition precedent to
acceptance.
 MCQ’s
• Under Sec 2(b) if the person to whom the proposal is
made signifies his assent the proposal is said to be
a) Accepted
b) Agreed
c) Conditionally agreed
d) None of the above
 MCQ’s
A revokes his proposal to B by telegram. The revocation is
complete as against A
a) When the telegram is dispatched
b) When B received the telegram
c) When B confirms
d) When A receives confirmation from B
 MCQ’s
• An offer can be revoked by
a) A notice
b) Death
c) Counter offer
d) All of the above
 MCQ’s
• Communication of revocation against the offeror will be
complete when
a) Such revocation transmitted by the offeror
b) When offeree receive such revocation
c) When offeree comes to the knowledge of the revocation
d) None of the above