Communication of Offer, acceptance and revocation:

Mode of communication - by act or omission – must have the effect of communicating such offer, acceptance or revocation – may be communicated by words (written or spoken) or by conduct.

Example: Installation of weighting machine at railway station is an offer – putting of coin in the slot of the machine is acceptance – switching off the machine is revocation of the offer.

When is communication complete: Sec.4

(i)     Communication of the offer - complete when comes to knowledge of the offeree.

Example - A posts a letter of offer for sale of house to B on 1^st June – received by B on 5^th June – communication of offer completes on 5^th June.

(ii)   Communication of the acceptance –

(a)    As against the offeror – when put into course of transmission by offeree/ acceptor so as to be out of his power of recall.

(b)   As against the acceptor - when it comes to the knowledge of the offeror.

Example: A sends an offer by post on 1^st June - received by B on 5^th June – B sends his acceptance on 10^th June – reaches A on 14^th June - The acceptance is complete –

Ø  As against A – when B posted the letter on 10^th June.

Ø  As against B – when A received the letter on 14^th June.

(iii)  Communication of revocation  - means withdrawal of offer or acceptance – revocation is complete –

Ø  As against the person making it – when put into course of transmission so as to be out of his power of recall.

Ø  As against the person to whom it is made – when it comes to his knowledge.

Example – A posts his offer to sell goods to B on 11^th February – reaches B on 14^th February – A revokes his offer by telegram on 13^th February -  telegram received by B on 16^th February –

Revocation is complete as against A – when the telegram is sent despatched on 13^th February.

Revocation is complete as against B – when telegram is received by him on 16^th February. 

Byrne & Co. Vs. Van Tienhoven  - T offered to sell goods to B by post on 1^st October – received by B on 11^th October – B telegraphs his acceptance on same day – On 18^th October, T sent a letter revoking his offer – letter of revocation received by B on 20^th October – Held, the contract made on 11^th October when B gave his acceptance – revocation not communicated before the contract – hence revocation invalid.