The Indian Contract Act: Section 5 Of The Indian Contract Act

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Section 5 of the Indian Contract Act, 1872, is perhaps one of the most important sections governing Law of Contractual Obligations in India. It deals with revocation of offer and acceptance. It reads as follows: “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.” An agreement takes place when two parties agree to the same thing in same manner. In other words, meeting of minds is important. But if a person, after making a proposal, feels a need to amend the original proposal or withdraw the proposal, he should be free …show more content…

v. Van Tienhoven & Co. [(1880) 5 CPD 344]. According to J. Lindley, a state of mind which is not ratified cannot be regarded in dealing between man and man and a revocation that has not been communicated bears no force in practical purposes and in the eyes of law. He emphasized that any other conclusion would produce extreme injustice and inconvenience. Offer is not withdrawn merely by acting inconsistently with the subject-matter of it. Notice of revocation must be given and this must reach the offeree, mere posting of the letter will not suffice the purpose. Notice of revocation shall be seemed to have been served when it reaches the offeree’s address. This position was upheld in the case of Tenax Steamship Co. Ltd. V. Owners of the Motor Vessels Brimnes [1974] All ER 88, CA. In this case, a notice for the withdrawal of a shipfrom the charterers’ services was sent by telexand was received by the plaintiff’s telex machine during normal business hours, but the plaintiff read the message the next day. He was, however, held bound by the notice when his machine received it. The situation would have been different in the case if the telex reached the plaintiff’s office after the office hours, then it would have been considered to be communicated on the next working

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