Pakistan study notes for Matric, Intermediate, B.A, B.COM BSC, M.A, BCS. Free Pakistani Urdu educational school, colleges and University notes.



An offer may come to an end by revocation, lapse, rejection or termination. Section 6 of the Contract Act specifies the various modes of lapse or revocation.


1. Expiry of time limit:

An offer automatically lapses after the expiry of stipulated time or where no time is specified after expiry of reasonable time.


An offer does not remain open for an indefinite period even if ~ has not been withdrawn. An offer which does not mention the time limit, remains open for a reasonable time.


2. Death or insanity of offerer or offeree:

An offer lapses if the offerer dies before acceptance or the offeree dies without accepting the offer and his heirs or executors cannot accept for deceased offeree. This principle is based on the fact that a dead man cannot make an offer nor he can continue to make the offer made by him while he was alive. Where, however, acceptance is made in ignorance of death or insanity of the offerer there would be a valid acceptance.


3. Offer lapses by subsequent illegality:

If the law is changed after the offer is made but before it is accepted so as to make the contract contemplated by the offer as illegal or incapable of performance, the offer lapses.



A made an offer to purchase certain quantity of wine from B. The government prohibited the sale of wine before.the offer is accepted. The offer lapses.


4. Non-acceptance in prescribed manner:

An offer lapses if not accepted in the mode prescribed or if no mode is prescribed in some usual and reasonable manner. When offer is net accepted in the prescribed manner, the offeror may, within a reasonable time after acceptance is communicated to him, insist that the offer should be accepted in the prescribed manner and not otherwise. If the accepter fails to do so the offeror may accept the acceptance so made.


5. Conditional offer:

A conditional offer lapses when the condition attached thereto is not accepted by the offeree.


6. Lapse by counter-offer:

An offer lapses when it is accepted with some modification in the terms of the offer or any new condition is attached in the acceptance by the offeree. Such an offer by the original offeree is known as counter-offer. Counter-offer is in fact, a rejection of the original offer. If the original offeror, who now stands in the position of an offeree, accepts the counter-offer, there is a binding contract. If there is a mere inquiry from the offeree regarding any matter of the offer it is not a counter-offer and cannot be treated as a rejection of the offer.


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