Revocation of Acceptance

In the simplest of terms to revoke means ‘to cancel’. If I say ‘I revoke’ I simply, mean that I take it back.

→ Legal Definition of Revocation of Acceptance

In legal terminology Revocation of Acceptance refers to the following

1. Proposer makes an offer.
2. Acceptor accepts the same and communicates the same to the proposer.
3. Acceptor revokes/cancels this acceptance before the communication reaches the proposer.

The Revocation of Acceptance is complete ONLY at any time before the communication of acceptance is complete as against the acceptor, but not afterwards. Revocation of Acceptance too can be either oral or written. Acceptance has to be revoked mandatorily before the same reaches the Offerer.

Examples are the best way to understand these concepts. So let us look at a few scenarios which shall make the concept of ‘Revocation of Acceptance’ clearer.

Scenario #1

Mr. S wants to sell his furniture. He writes about the same and makes an offer to his friend Mr. K to buy the same. Mr. K has just bought another house for which this furniture would be useful. So after going through the details he likes the same, writes to Mr. S stating that he has accepted the offer, and posts it to him. Mr. K’s family is not OK with this second-hand furniture. Hence, they convince him to refuse Mr. S’s offer. Mr. K then sends in a fax to Mr. S stating that he has revoked his acceptance. In normal circumstances, a fax works faster than regular post. If Mr. S receives the fax first then we say that this is considered as proper, legal Revocation of Acceptance.

­Scenario #2

Let us consider the same scenario stated above. Maybe the fax sent out for Revocation of Acceptance was much later than the Acceptance post. Unfortunately, if the post reaches Mr. S before the fax, the fax sent for ‘Revocation of Acceptance’ does not hold good. This is because the Revocation of Acceptance reached after the actual Acceptance.

∗ We need to consider 2 aspects in any Revocation, whether it is Revocation of Offer or Revocation of Acceptance. They are:

1. Time Limit
2. Completion of Communication

Let us understand the above with the same example stated above.

Step #1: Mr. S posts his offer on 1^st of January 2015 at 4 PM

Step #2: Mr. K receives the offer on 4^th of January 2015 at 2 PM

Step #3: Mr. K posts his acceptance on 5^th of January 2015 at 12 PM

Step #4: Mr. S received the acceptance letter on 7^th of January 2015 at 3 PM

Step #5: Mr. K faxes his revocation on 5^th January 2015 at 5:30 PM

Step #6: Mr. S receives this revocation fax on 5^th January 2015 at 5:45 PM

1. Time Limit: S can revoke his acceptance anytime between 5^th of January 12 PM to 7^th Of January 2015.
2. Completion of Communication: The communication of the Revocation of Acceptance is completed against Mr. K on 5^th January 2015 at 5:30 PM when he posts the Acceptance Revocation Letter and the same is completed against Mr. S when he receives the same on 5^th January 2015 at 5:45 PM.

The Indian Contract Act, 1872 was created an amended at regular intervals. But technology and its speed has still not paved its way inside the law. With technological advancements, situations are not as simple as a post, a telegram, or a fax. It is easy to compare the timelines of the same but with business going totally on emails and messages; it has become very difficult to understand the same. It is difficult because technology has become as fast as the speed of lightning. The difference between one party sending out an email/smart-phone message and the counter-party receiving the same is mere Nano-seconds. Moreover, the party receiving the communication can claim that they have not opened the post/email/message.