As we know that the cancellation of proposal means the cancellation of the proposal. When the proposal takes back his offer, the proposal is said to be revoked. The following are the various mode of cancellation of a proposal.
Modes Of Cancellation of Proposal
According to section 5 of The Contract Act, the proposal may come to an end by the following ways:
BY NOTICE
As already started that the proposer can revoke his proposal by giving a notice of revocation before the acceptance of the proposal is complete as against the proposer.
When before the acceptance of the proposal, the proposer makes a notice of revocation to offeree, the proposal comes to an end. When the proposal is revoked, now there cannot be a contract.
See Also: What is Breach of Contract
Illustration: A offers to sell his car to B by a letter for $200,000. Before its acceptance is made by B, A sends a telephone message to B for the revocation of the proposal.
The proposal will come to an end, as the B attends the telephonic message.
BY THE LAPSE OF STIPULATED TIME
Sometimes, when the proposer makes the offer, he also describes the times for its acceptance. Now the proposee is bound to accept the proposal within stipulated time.
If the time for the acceptance of the proposal, has been expired but the offeree has not accepted the proposal, now proposal is said to be rejected due to the lapes of time and offeree has no right to accept it.
Illustration: A offers to sell his camera to B for $1000. A also describes that B can convey about acceptance within 20 days.
B remains silent upto the declared time. Now, the proposal will be terminated due to the lapse of time.
BY THE LAPSE OF REASONABLE TIME
When the proposal is made but no time is prescribed for the acceptance of the proposal, the proposee is bound to accept the proposal within a reasonable time.
What is a reasonable time, is a question of fact which depends on each particular case. If the proposee does not accept the proposal within a reasonable time, the proposal is said to be rejected due to the lapse of reasonable a time.
Illustration: A offers to purchase 1000 units of B’s product, $50 each on 10th of Ramzan. It is clearly seen that he wants to sell them all on Eid occasion.
B sends the goods two months after the Eid. A is not bound to accept the quantity because his offer stands terminated du the lapse of reasonable time.
BY THE FAILURE OF THE ACCEPTER TO MEET CONDITION
When the acceptor of the proposal fails to meet any condition prescribed in the proposal for its acceptance, the proposal is said to be revoked due to the failure of the acceptor.
See Also: What is Discharge of Contract
Illustration: A offers to sell his goods for $50 per unit to B to get delivery from A’s go down. B accepts to purchase the goods for $50 per unit to get delivery at B’s sale point.
The proposal will be considered cancelled because B has’ not met all the terms of the proposal.
BY THE DEATH OR INSANITY OF THE PROPOSER
If the proposer, after giving proposal dies or becomes insane before its acceptance IS made and this fact comes to the knowledge of the proposee, the proposal is said to be revoked.
If the promisee accepts the proposal after having knowledge of the death or insanity of the proposer, the contract is not valid and proposal is said to be cancelled.
But when the accepter has no knowledge of the death or of the insanity of the proposer at the time of acceptance.
The contract is valid and the legal representatives of the proposer are responsible for the performance of the contract.
Illustration: A offers to sell his car to B for $200,000. Before its acceptance the car gets accident and A dies but car remain undamaged.
B having knowledge of this fact accepts the proposal. This contract is not valid and proposal will be treated as cancelled.
REJECTION BY OFFEREE
when the proposal is made by the offeror to the offeree, it is the legal right of the offeree to accept or reject the proposal.
If the offeree selects to reject the offer and sends the message of rejection to the offeror, the proposal is cancelled and proposee has no right to accept the proposal after its rejection.
Illustration: A offers to sell his bicycle for $3000 to B, “B” refuses to accept the proposal by letter. Now the proposal is said to be cancelled.
BY DESTRUCTION OF SUBJECT MATTER
When the subject matter of the offer is destroyed before the acceptance of the offer, without the fault of the offeror the offer is said to be cancelled and there cannot be contract and the prosper cannot be held responsible.
See Also: Examples of Quasi Contract
An Illustration: “A” offers to sell his horse to B for $3000. The horse dies before the acceptance of the proposal by B.
As the subject matter of the contract (horse) has destroyed, so the proposal will treat as cancelled and there cannot be a contract.
WHEN PROPOSAL BECOMES ILLEGAL
When due to the occurrence of any incident, the proposal becomes illegal before its acceptance, the proposal is said to be cancelled and there cannot be a proposal.
Illustration: A offers to sell 100 packets of cigarette to B for $100 per packet. The government bans the sale and purchase of cigarette within the country before its acceptance is made by B.
The proposal be treated as cancelled and there cannot be contract.
BY CROSSED OFFER
When the proposal is made by one party and same is not accepted but the other party (offeree) makes cross proposal with someone amendment, the first proposal is treated to be cancelled.
Illustration: A offers to sell B his bicycle for $3000. B offers to purchase it for $2000. The offer made by A is said to be cancelled, f when B makes his offers.
