Revocation of a proposal

A proposer is not legally bound to keep his proposal open indefinitely. Thus, the proposal will remain valid until it is revoked by its proposer.

By S.5 (1) of the Contracts Act 1950, a proposal may be revoked at any time before the communication of acceptance is complete as against the proposer.

By S.6 of the Contracts Act 1950, a proposal may be revoked under the following conditions:

1. By the communication of notice of revocation by the proposer to the other parties.

-Under this section, the proposer is required to communicate the revocation.

-Communication by third parties not authorized by the proposer will probably not valid.

2. By the lapse of the time prescribed in the proposal for its acceptance, or if no time is prescribed, by the lapse of a reasonable time, without any communication of acceptance.

3. By the failure of the acceptor to fulfill a condition precedent to acceptance.

4. By the death or mental disorder of the proposer, if the fact of his death or mental disorder comes to the knowledge of the acceptor before the acceptance.

-The death or mental disorder of the proposer does not automatically amounts to a revocation of offers.

-Knowledge of the acceptor is a crucial factor.

-If the acceptor, in ignorance of the death or mental disorder of the proposer, accept the offer, such acceptance would be valid.

-However, if the acceptor was aware of it, it will not be valid.