Revocation of Offer

Indian Contract Act provides for revocation of the offer. The offer can be revoked as per section 5 of the Indian Contract Act. The offeror can revoke the offer any time. But, the revocation can be done only before the communication of acceptance is complete. The communication of acceptance includes the process of expressing the communication i.e. when the acceptor accepts the offer; he will begin the acceptance process with communication of acceptance of the offer. That process of communication is considered the completion of acceptance.

The acceptor is also having rights to revoke his acceptance. But this revocation is possible only before the communication of acceptance reaches the offeror. However, the law in India does not permit for the revocation of acceptance once the acceptance is given has reached the offeror.

How the offeror can revoke his offer?

The offeror can revoke his offer anytime either by expressed words or impliedly. There is no rule that the offeror should communicate the revocation of an offer to the acceptor. If the acceptor comes to know the offer has been revoked that is sufficient.

How the offer may come to an end?

By revocation, the offer may come to an end

The revocation should be made before acceptance. Like it was discussed above the revocation can be done before the process of acceptance had begun.

By lapse of a reasonable time, the offer comes to an end

Sometimes the offeror may set time for acceptance and the acceptance must be given in that stipulated time and on failure to do so the offer is revoked. If the offeror does not set any time limit yet the acceptance must be given in a reasonable time.

By non-fulfillment of conditions, the offer comes to an end

When the conditions set by the offeror were not fulfilled the offer stands canceled. The conditions set before the acceptance must be fulfilled by the acceptor before he accepts the offer.

By the death of proposer the offer ends

The offeror dies and the acceptor has no knowledge about the same. The India Contract Act says the contract is binding if it is enforceable against the offeror's estate. Otherwise, the offer cannot be accepted after the death of the offeror.

The insanity of the offeror ends the offer

The offeror becomes insane after the offer was made, the offer can no more be accepted. If the acceptance is made without the knowledge of insanity the same as in the case of death of the offeror applies in this situation too.