REVOCATION OF OFFER
Generally, an offeror can revoke or withdraw his offer at any time before it is accepted even though he (offeror) had originally indicated to keep it open for a definite period. Offer may be revoked or withdrawn so long as it is a mere offer i.e. net accepted. This is applicable even when the offer expressly stipulates that it will net be withdrawn without the consent of the offeree.
Thus, where an offerer agrees to keep the offer open for a definite period of time, he can revoke it before the expiry of that period unless there is consideration for keeping the offer open like option contract.
Modes of revocation- Section 6:
Revocation of offer (or proposal) may be made in one or more of the following ways:
1. By communication of notice of revocation by the offeror to the other party before acceptance is complete.
2. By lapse of time prescribed in the offer for acceptance, or when no such time is prescribed, by lapse of reasonable time, without communication of acceptance.
3. By failure of offeree to fulfil condition precedent to acceptance.
4. By death or insanity of the offeror if this fact is known to offeree before acceptance.
5. If the offeror has agreed to keep the offer open for a certain period, he can revoke it before the expiry of that period only.
a. when the offer has net been accepted, or
b. when there is no consideration for keeping the offer open.
Rejection of offer
An offer may be rejected by the offeree. Once the offer is rejected it cannot be subsequently accepted. Rejection of an offer may be express or implied.
a. Express rejection is made where the offeree by words spoken or written rejects the offer. Such rejection is legally effective only when the notice of rejection reaches the offerer.
b. Implied rejection occurs where a rejection is implied by law i.e.
(i) where the offeree makes a counter offer e.g.
(ii) where the offeree makes a additional acceptance e.g.