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 Termination Or Lapse Of An Offer

A valid offer when accepted becomes a contract. However, before it is accepted, it may lapse. An offer lapses by the following ways:

(a) By lapse of time: An offer lapses:

 

 i. Where time is specified: if it is not accepted within the time limit specified in the offer.
 

 ii. Where no time is specified: if it is not accepted within reasonable time limit.

 

 


 

(b) By death or insanity of the offeror or the offeree: The offer lapses:
 
 i. Where the offeror dies or becomes insane before accepted and the offeree comes to know about this fact before accepting the offer.
 
 ii. Where the offeree dies or becomes insane before accepting the offer.
 
It is to be kept in mind that if offer is accepted by the offeree in ignorance of the death or insanity of the offeree, the acceptance is valid and the contract will be performed by the legal representative of the deceased offeror.
 
But if the contract requires personal skill of the deceased offeror then the legal representative of the deceased offeror is not bound by the contract.
 
 


(c)
By rejection by the offeree: An offer lapses if it is rejected by the offeree. If offeree rejects the offer he cannot revive it again.

 

 

 

 

(d) By revocation: Revocation means withdrawal or cancellation of the offer before accepted.

 

 

 


(e) By non acceptance in the prescribed mode: An offer lapses:

 
     i. Where mode is prescribed: if it is not accepted by the offeree in the manner prescribed and the offeror refuses to accept such acceptance.
 
    ii. Where no mode is prescribed: if it is not accepted in some usual and reasonable manner.
 
 

(f) Non fulfillment of condition precedent: If an offer requires fulfillment of some condition before acceptance of the offer, the offer lapses if such condition is not fulfilled.

 
 
 
(g) Counter offer: An offer lapses if the offeree makes a counter offer.

 
 

 
(h) Cross offer: An offer lapses if the offeree makes a cross offer.
 
(i) By change of law. An offer comes to an end if the law is changed so as to make the contract contemplated by the offer illegal or incapable of performance.





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