Section 107 The Indian Contract Act, 1872
Section 107 of the Indian Contract Act, 1872 states:
"Revocation how made.
A proposal is revoked—
(1) by the communication of notice of revocation by the proposer to the other party;
(2) 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;
(3) by the failure of the acceptor to fulfil a condition precedent to acceptance; or
(4) by the death or insanity of the proposer, if the fact of his death or insanity comes to the knowledge of the acceptor before acceptance."
Explanation:
Section 107 deals with how a proposal (or offer) can be revoked, i.e., legally withdrawn before it becomes a contract. The section provides four modes of revocation:
Notice of Revocation:
The proposer can inform the other party that the offer is withdrawn before it is accepted.
Time Lapse:
If the offer sets a deadline for acceptance and that time passes, the offer expires.
If no time is given, then after a reasonable time, the offer lapses.
Non-fulfillment of a Condition Precedent:
If the offer had a specific condition to be fulfilled before acceptance, and that condition is not met, the offer gets revoked.
Death or Insanity of the Proposer:
If the proposer dies or becomes insane before the offer is accepted, and the acceptor knows about it, the offer is considered revoked.
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