Section 5 of The Indian Contract Act, 1872
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. Illustration A proposes, by a letter sent by post, to sell his house to B. B accepts the proposal by a letter sent by post. A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance, but not afterwards. B may revoke his acceptance at any time before or at the moment when the letter communicating it reaches A, but not afterwards. STATE AMENDMENT Uttar Pradesh.-- Amendment of section 5 of Act (9 of 1872).--In section 5 of Indian contract Act, 1872, hereinafter in this Chapter referred to as the principal Act, at the end of the first paragraph, the following explanation shall inserted, namely:-- "Explanation--Where an invitation to a proposal contains a condition that any proposal made in response to such invitation shall be kept open for a specified time and a proposal is thereupon made accepting such condition, such proposal may not be revoked within such time." [Vide Uttar Pradesh Act, 57 of 1976, s. 2]
Summary
- Section 5 of this statute dictates the exact time limit for revoking or calling off proposals and acceptances.
- A proposal can be revoked at any point before the acceptance is complete against the proposer, but not after.
- An acceptance can be revoked at any time before the acceptance is complete against the acceptor, but not after.
- This section protects both parties by establishing a clear point of no return for both offers and acceptances.
Practical examples
FAQ
1. When can a proposal be revoked under Section 5 of The Indian Contract Act, 1872?
Under Section 5 of The Indian Contract Act, 1872, a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not after that moment.
2. What is the deadline to revoke an acceptance under Section 5 of the contract statute?
Under Section 5 of the contract statute, you can revoke your acceptance at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.
3. Can a seller withdraw an offer after the buyer has posted their acceptance under Section 5 of the Indian contract law?
No, under Section 5 of the Indian contract law, the seller cannot withdraw the offer once the buyer posts their acceptance letter, because the communication of acceptance is then complete against the proposer.
Test yourself
Q1.Under Section 5 of The Indian Contract Act, 1872, up to what point can a proposal be revoked?
Q2.Under Section 5 of the contract statute, when can an acceptance be revoked?
Q3.Under Section 4 and Section 5 of the Indian contract law, if B accepts A's offer by post, and B wants to revoke the acceptance, which of these is correct?
Q4.Under Section 5 of The Indian Contract Act, 1872, if A sends an offer to sell a house, and B posts an acceptance, when does the point of no return occur for A's ability to revoke the offer?