When is Communication of Offer Complete?

• When is Communication of Offer Complete

The communication of offer is complete when it comes to the knowledge of the person to whom it is made. In case an offer is made by post, its communication will complete when the letter containing the offer reaches the offeree.

Example X ofAgra sends a letter by post to Y of Delhi offering to sell his car far Rs 1,00,000. The letter is posted on 1st January and this letter reaches on 7th January. The communication of the offer is complete on 7th January.

Note: An offer accepted without its complete communication does not bind the offerer.

Example In case of Lalman u Gauri Dutt, G sent his servant L to trace his lost nephew. When the servant had left, G announced a reward to anyone who traces the boy. L found the boy and brought him home. When L came to know of the reward, he claimed the reward. It was held that L was not entitled to the reward because he did not know about the offer when he found the missing boy.

WHEN IS COMMUNICATION OF ACCEPTANCE COMPLETE 

Lets try to understand the communication of offer and acceptance with the help of following example :-

X of Agrasends a letter by post to Y of Delhi offering to sell his car for Rs. 1,00,000. This letter is posted on 1^st January and reaches Yon 7^th January Y sends his acceptance by post on 10^th January but X receives this letter of accep­tance on 15th January. Answer each of the following questions.

(a)      When is the communication of offer complete :-  7^th January

(b)      When is the communication of acceptance complete as against the offerer :- 10^th January

(c)       When is the communication of acceptance complete as against the acceptor : 15^th jan

(d)      If X sends a telegram on 8^th January revoking his offer and this telegram reaches Y before the letter of the acceptance is posted. Is revocation of offer is valid? Yes it is valid

(e)      If Y sends a telegram on 14^th January revoking his acceptance and this telegram reaches X before the letter of acceptance is received by X. Is revocation of acceptance is valid? Yes it is valid

• REVOCATION OF OFFER AND ACCEPTANCE

Meaning of Revocation The term `revocation’ means `taking back’ or `withdrawal’.

What is the Time Limit within which Offer can be Revoked According to Section 5 of the Indian Contract Act, a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. We know that communication of accep­tance is complete as against the proposer when a properly addressed and stamped letter of acceptance is duly posted by the acceptor. Hence, an offer can be revoked at any time before the letter of acceptance is duly posted by the acceptor. Thus, the proposer may revoke his offer by a speedier mode of communication which will reach before the letter of acceptance is posted by the acceptor.

Example X ofAgra offers by a letter dated 1st January sent by post to sell his car to Y of Delhi for Rs. 1,00,000. Y accepts the offer on 7th January at 1 p.m. by letter sent by post. Here, X may revoke his offer at any time before 1 p.m. on 7th January but not afterwards.

Notes :

(i)      Revocation must always be expressed.

(ii)     Revocation must move from the offerer himself or a duly authorised agent.

(iii)    Notice of revocation of a general offer must be given through the same channel by which the original offer was made.

(iv)    Offer cannot be revoked even if the letter of acceptance is lost or delayed in transit.

• Time Limit within which Acceptance can be Revoked

According to Section 5 of the Indian Contract Act, “An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.” We know that communication of acceptance is complete as against the acceptor when the letter of acceptance is actually received by the proposer. Hence, an acceptance can be revoked at any time before the letter of acceptance is actually received by the proposer. Thus an acceptor may revoke his acceptance by a speedier mode of communication which will reach before the letter of acceptance is received by the proposer.

Example X ofAgra offers by a letter dated 1st January sent by post to sell his car to Y of Delhi for Rs 1,00,000. Y accepts the offer on 7th January at 1 p.m. by a letter sent by post. X receives the letter of acceptance on 15th January at 3 p.m. Here, Y may revoke his acceptance at any time before 3 p.m. on 15th January but not afterwards.