The revocation of proposal means the cancellation of the proposal. When the proposal takes back his offer, the proposal is said to be revoked.
According to section 5(a) of The Contract Act, “The proposal may be revoked at any time before the communication of its acceptance is completed as against the proposer but not afterwards.”
The communication of acceptance of a proposal is complete as against the proposer when the acceptor sends the message of acceptance into the course of transmission of the proposer.
See Also: What is Proposal
When the message of the acceptance is sent to the proposer, now the proposer cannot take back his proposal.
Table of Contents
ToggleRevocation of Proposal When Complete
The communication of revocation of the proposal is complete as against the proposer and proposee as follows:
As Against the Proposer
The revocation of the proposal is complete as against the person (proposer) who makes it when it is put into a course of transmission to the person (proposee) to whom it is made, so as to be out of the power of the person who makes it.
Simply stating when the proposer sends the message of revocation to the offeree. The communication of revocation is completed as against the proposer when the message of revocation is put into the course of transmission.
As Against Offeree
The communication of revocation of Pr0posal is complete as against the person (offeree) to whom it is made when it comes to his knowledge.
So, when the message of revocation of Pr0Posal comes to the knowledge of offeree, the communication of a revocation is complete against the offeree.
Telegram is dispatched and it is complete as against B when the telegram is received and read by B.
Communication of Proposal
The communication of proposal means to bring the proposal into the knowledge of the offeree. Until the offer is not communicated to the offeree.
There is no possibility of its acceptance. The proposal may be communicated in writing, orally or by the conduct of the offeror.
Communication of Proposal when Completed
According to section 4 of The Contract Act. “The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made.”
It means the communication of a proposal is completed when the proposal sends the message of a proposal to the offeree and offeree receives it and read it.
See Also: Remedies for Breach of Contract
Illustration: A essential offers by letter to sell his car for $200,000 to B. The communication of the proposal is completed when a letter is received and read by B.