According to Section 6 of the Indian Contract Act, an offer doesn’t last forever it can come to an end in several ways. This article explains each of those ways with examples in easy-to-understand language, perfect for law students trying to grasp the basics of offer & revocation.
Revocation by the Offeror (Notice of Revocation)
The person making the offer (called the offeror) can take back the offer any time before the other person (the offeree) accepts it. Even if the offer was supposed to stay open for a certain time, it can still be withdrawn early as long as it's done before acceptance.
Lapse of Time
If an offer states that it will be valid until a certain date, it automatically ends after that date if not accepted. Even when no time limit is mentioned, the law assumes the offer ends after a "reasonable time," depending on the circumstances.
Example: A person applies for shares on June 8 and gets a response only on November 23. Since the delay is unreasonable, the offer is considered lapsed.
Non-Fulfillment of Conditions
Sometimes, offers come with specific conditions. If the offeree fails to meet those conditions, the offer is no longer valid.
Example: A offers to sell his scooter to B for ₹48,000 if B gets into a medical college. If B doesn’t get admission, the offer ends.
Rejection by the Offeree
If the offeree rejects the offer and tells the offeror, then the offer comes to an end. This is true even if the offer was supposed to stay open for longer. Rejection can be in writing, spoken, or implied.
Making a Counter-Offer
If the offeree suggests a different deal instead of accepting the original one, it is called a counter-offer. This cancels the original offer.
Example: A offers to sell his house to B for ₹1 lakh. B replies with ₹80,000. A refuse. Later B agrees to ₹1 lakh, but A isn’t interested anymore. The first offer ended with the counter-offer.
Death or Insanity
If the person making the offer or the person receiving it dies or goes insane before the offer is accepted and the other party knows about it then the offer ends. But if the death happens after acceptance, the legal representatives are bound by the contract.
Illegality After the Offer Is Made
If an offer becomes illegal because of a new law before acceptance, then the offer is automatically cancelled.
Example: If A offers to sell rice privately, but before B accepts, a new law bans such sales, the offer is no longer valid.
Destruction of Subject Matter
If the item that the offer is about is destroyed before acceptance, the offer ends.
Example: A offers to sell his horse to B, but the horse dies before B accepts. The offer becomes void.
Conclusion
Section 6 gives a clear idea of how and when an offer ends. Understanding these points is crucial, as each situation helps define whether a contract can be formed or not. Offers don’t stay open forever, and many factors like time, rejection, or unforeseen events can cause them to lapse. Knowing these rules ensures you're clear on when a legal promise becomes binding and when it doesn't.
