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Revocation of Offer and Acceptance

  • An offer can be revoked at any time before the communication of acceptance is completed as against the offeror, but not later.
  • An acceptance may be revoked at any time, before the communication of acceptance is completed as against the offeree, but not later.
Example

Amar offers to sell his house to Akbar for ₹ 15,00,000 by a letter dated 25th December. The letter reaches Akbar on 27th December. Akbar accepts the offer by a letter posted on28th December. This letter of acceptance reaches Amar on 30th December.

  • Here, Amar may revoke his proposal at any time before Akbar posts his letter of acceptance i.e., before 28th December
  • An acceptance may be revoked at any time, before the communication of acceptance is completed as against the offeree, but not later.

Note: If both, the offeree’s letter of acceptance and withdrawal of acceptance reaches simultaneously, then formation of contract depends on what is read first. If the contents of letter of acceptance come to the knowledge of the offeror then a valid contract would be formed. On the other hand if the letter/telegram of revocation is read first and the contents of the same come to the knowledge of the offeror then there would not be formation of any contact.





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