Section 6 The Indian Contract Act, 1872
Here is a detailed explanation of Section 6 of the Indian Contract Act, 1872:
๐น Section 6 โ Revocation of proposals
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 the death or insanity comes to the knowledge of the acceptor before acceptance.
โ Explanation:
Section 6 lays out the modes in which an offer (proposal) can be revokedโi.e., withdrawn or terminated before acceptance.
Clause-by-clause Explanation:
Communication of revocation (Clause 1):
The proposer can withdraw the offer by informing the offeree before it is accepted.
Lapse of time (Clause 2):
If a time limit is mentioned in the offer and the offeree does not accept within that time, the offer automatically expires. If no time is specified, a reasonable time applies.
Failure to meet a condition precedent (Clause 3):
If the offer is conditional and the condition is not met, the offer is revoked.
Death or insanity (Clause 4):
If the proposer dies or becomes insane before the offer is accepted, and the offeree becomes aware of it, the offer is revoked.
๐งพ Illustration:
A offers to sell his house to B and says the offer is open for 10 days. If A revokes the offer on Day 5 before B accepts, and informs B, the offer is validly revoked.
If A dies on Day 4 and B learns about it before accepting, the offer is automatically revoked.
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