Saturday, October 20, 2007

Contract Act_Practical Problems_47

A proposes by a letter sent by post to sell his house to B. B accepts the proposal by letter sent by post. State the legal position regarding revocation of offer and acceptance by A and B respectively.

The problem in question is based on the provisions of Section 5 of the Indian Contract Act. According to Section 5, a proposal may be revoked at any time before the communication of acceptance is complete as against the proposer as per Section 4. Communication of acceptance against the proposer is complete when the letter of acceptance is posted. Thus, B may revoke his proposal at any time before or at the moment when B posts his letter of acceptance but not afterwards.

Revocation of acceptance, as per Section 5, may be made at any time before the communication of the acceptance is complete as against the acceptor, but not after- wards. As per Section 4, communication of acceptance is complete as against the acceptor when it comes to the knowledge of the proposer. Thus, B may revoke his acceptance at any time before or at the moment when the letter communicating it reaches A, but not afterwards.

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