Indian Contract Act Section 6 — Revocation how made

CHAPTER I OF THE COMMUNICATION, ACCEPTANCE AND REVOCATION OF PROPOSALS

Commercial / Corporate

Summary

Sub-section (1) covers revocation by the proposer directly telling the other party that the offer is withdrawn. This notice of revocation must be communicated to the other party for the revocation to take effect.

Sub-section (2) deals with revocation through the passage of time. If the proposal itself sets a specific time limit for acceptance, the offer is revoked once that time period ends without the acceptance being communicated. If no time limit is set in the proposal, the offer is revoked after a reasonable amount of time passes without the acceptance being communicated.

Sub-section (3) addresses revocation when the person accepting the offer fails to meet a condition that was required before the acceptance could happen. If such a condition precedent is not fulfilled, the proposal is revoked.

Sub-section (4) covers revocation due to the death or insanity of the proposer. The proposal is revoked if the person accepting the offer learns of the proposer's death or insanity before the acceptance is made.

Official Text

A proposal is revoked—

(1) by the communication of notice of revocation by the proposer to the other party;

(2) by the lapse of the time prescribed in such proposal for its acceptance, or, if no time is so prescribed, by the lapse of a reasonable time, without communication of the acceptance;

(3) by the failure of the acceptor to fulfil a condition precedent to acceptance; or

(4) by the death or insanity of the proposer, if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance.