Section 96 The Indian Contract Act, 1872
Section 96 – The Indian Contract Act, 1872
Title: Revocation how made
📜 Bare Act Language:
A proposal is revoked—
by the communication of notice of revocation by the proposer to the other party;
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;
by the failure of the acceptor to fulfill a condition precedent to acceptance; or
by the death or insanity of the proposer, if the fact of the death or insanity comes to the knowledge of the acceptor before acceptance.
🔍 Explanation:
Section 96 outlines the four ways in which an offer (proposal) under contract law can be revoked (i.e., canceled or withdrawn):
By Notice – The proposer communicates that the offer is revoked before it's accepted.
By Time Lapse – If the offer isn't accepted in time, it automatically lapses.
By Non-fulfillment of Conditions – If a condition set for acceptance isn't met, the offer ends.
By Death or Insanity – If the proposer dies or becomes insane and the acceptor knows this before accepting, the offer is revoked.
⚖️ Illustration:
If A offers to sell a house to B and says the offer is valid for 10 days, but B doesn’t accept within that period, the offer is revoked automatically.
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