Page 6 - 01. Indian Contract Act, 1872

Communication of offer:

 It is complete when it comes to the knowledge of the person to whom it is made
 It may be communicated either by words spoken or written or may be inferred

from conduct of parties.
 If made by post, it will be complete, when the letter containing offer reached the

intended person.

Communication of acceptance
 It is complete –

As against the propose – when it is put in the course of transmission to him so as to be
out of power of the acceptor to withdraw the same.

As against the acceptor – When it comes to the knowledge of the proposer

Revocation of offer:
 It means withdrawal or taking of an offer

 It can be revoked anytime before its acceptance

Revocation of acceptance
 It means withdrawal or taking back of acceptance by the acceptor

 It may be revoked at any time before its communication is completed as against
the acceptor, but not afterwards

Lapse of offer:

 It means end of an offer
 Offer should be accepted before it lapses

Offer may lapse in following ways:

(i) By communication of notice of revocation
(ii) By lapse of time by failure to accept condition precedent

(iii) By failure to accept condition precedent
(iv) By death or insanity of the offeror

(v) By counter offer by the offeree

(vi) By not accepting the offer, according to prescribed mode
(vii) By rejection of offer by the offeree

(viii) By change in law or circumstances

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