Question

Which of the following statements are correct?
(i) A proposal is revoked by the communication of notice of revocation by the proposer to the other party.
(ii) A proposal is revoked by the lapse of the time prescribed in such proposal for its acceptance.
(iii) A proposal is automatically revoked if the acceptor fails to accept it in writing.
(iv) A proposal is revoked by the failure of the acceptor to fulfil a condition precedent to acceptance.

• A. Only (i), (ii), and (iii)
• B. Only (i), (iii), and (iv)
• C. Only (ii), (iii), and (iv)
• D. Only (i), (ii), and (iv)

Hint:

Remember that the fourth mode of revocation under Section 6 (not listed in this question) is the death or insanity of the proposer, provided that the fact of their death or insanity comes to the knowledge of the acceptor before acceptance.

Answer 1

The Correct Option is D

Step 1: Understanding the Question:
The question asks us to identify the correct modes of revocation of a proposal (offer) under the Indian Contract Act, 1872.
It presents four statements and asks us to determine which combination of these statements is legally accurate according to the statutory provisions.

Step 2: Key Legal Principles and Approach:
The revocation of a proposal is explicitly governed by Section 6 of the Indian Contract Act, 1872.
Section 6 outlines four specific modes through which a proposal can be legally revoked before its acceptance.

Step 3: Detailed Explanation:

• Communication of Notice of Revocation: According to Section 6(1), a proposal is revoked by the communication of notice of revocation by the proposer to the other party.

• This notice must be communicated before the acceptance is complete as against the proposer.

• Hence, statement (i) is legally correct.

• Lapse of Prescribed or Reasonable Time: According to Section 6(2), a proposal is revoked 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.

• Thus, statement (ii) is legally correct.

• Failure to Accept in Writing: Statement (iii) says a proposal is automatically revoked if the acceptor fails to accept it in writing.

• This is incorrect because unless the proposer has explicitly prescribed writing as the exclusive mode of acceptance, oral acceptance or acceptance by conduct is perfectly valid.

• Even if the proposer prescribes a specific manner and the acceptance is not made in that manner, the proposal is not automatically revoked; the proposer must insist on the prescribed manner within a reasonable time, otherwise they are deemed to have accepted the deviation under Section 7.

• Hence, statement (iii) is legally incorrect.

• Failure to Fulfil a Condition Precedent: According to Section 6(3), a proposal is revoked by the failure of the acceptor to fulfil a condition precedent to acceptance.

• Thus, statement (iv) is legally correct.

• Since statements (i), (ii), and (iv) are correct, Option (D) is the correct answer.

Step 4: Final Answer:
The correct statutory modes of revocation of a proposal are contained in statements (i), (ii), and (iv), making Option (D) the correct answer.