Section 5 The Indian Contract Act, 1872
Section 5 – The Indian Contract Act, 1872
📘 Topic: Revocation of Proposals and Acceptances
📜 Bare Act Language:
Section 5. Revocation of Proposals and Acceptances
"A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.
An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards."
🔍 Explanation in Simple Terms:
🔹 Revocation of Offer:
An offeror (person making the offer) can cancel the offer at any time before the acceptance is communicated to him.
But once acceptance reaches the offeror, revocation is no longer possible.
🔹 Revocation of Acceptance:
An acceptor can also withdraw acceptance, but only before the acceptance reaches the offeror.
Once the acceptance is communicated to the offeror, it cannot be revoked.
📬 Important Timings (as per Sections 4 & 5):
| Event | Completion of Communication |
|---|---|
| Offer | When it comes to the knowledge of the offeree |
| Acceptance (for proposer) | When it is put in the course of transmission to him |
| Acceptance (for acceptor) | When it comes to the knowledge of the proposer |
⚖️ Illustration:
A makes an offer to B by letter.
B posts a letter of acceptance on Monday.
A sends a revocation on Tuesday which reaches B on Wednesday.
The contract is already concluded on Monday when B posts acceptance.
A’s revocation is ineffective because it was sent after acceptance was posted.
📚 Case Law Reference:
Henthorn v. Fraser (1892):
Acceptance posted before revocation is received — contract is valid.
Byrne v. Van Tienhoven (1880):
An offer cannot be revoked once the letter of acceptance is posted.
✅ Key Takeaway:
Timing is critical in contract formation.
Both offers and acceptances can be revoked, but only before their communication becomes complete against the revoking party.
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