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Showing posts with label A proposal is absolute. Show all posts
Showing posts with label A proposal is absolute. Show all posts

When does a proposal become absolute? Can a proposal be revoked, if so, how?

A proposal is absolute when it is accepted as per the will of promisor without varying any terms or conditions of the proposal. Sec. 7 of the Contract Act mentions that in order to convert a proposal into a promise, the acceptance must be absolute and unqualified.

Yes, the proposal can be revoked. Sec. 5 of the Contract Act says that ‘a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.’ It means before completion of acceptance, the proposal can be revoked.

For Example- A proposes, by a letter sent by post, to sell his house to B. B accepts the proposal by a letter sent by post. A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance, but not afterwards.

Sec. 6 of the Contract Act provides the method of revocation of proposal as:

Revocation how made- A proposal is revoked-

(1) By the communication of notice of revocation by the proposer to the other party

(2) By the lapse of the time prescribed in such proposal for its acceptance, or, if no time is so prescribed, by the lapse of a reasonable time, without communication of the acceptance;

(3) By the failure of the acceptor to fulfill a condition precedent to acceptance or

(4) By the death or insanity of the proposer, if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance.

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