COMMUNICATION :-For the proposal and acceptance communication plays the central role. without communication proposal and acceptance is not possible without bringing proposal in the notice of the acceptor, proposal cannot be completed. On the other hand if the acceptance is not communicated to the proposer, it cannot be completed. So we can say that without communication agreement is not possible between the two parties.
Communication of an Offer :-
The communication of an offer is completed when it comes the knowledge of the person to whom it is made.
Example :- Suppose Mr. Warn proposes by letter to sell his factory to Mr. Anderson for Rs. 10 million. When Mr. Anderson receives the letter, the communication is completed.
In the above example this proposal is not completed as long as Mr . Anderson does not receive the letter of Mr. Warn containing the above proposal. If a proposal makes the proposal face to face to the acceptor completes, as the acceptors hears it.
Communication of Acceptance :-
1st : The communication of acceptance is completed as against the proposer when it is put in a course of transmission to him, so as to be out of the power of the acceptor.
2nd : As against the acceptor, when it comes to knowledge of the proposer.
Example :- Suppose Mr. Anderson accepts the proposal of Mr. Warn in the above case by letter. The communication of the acceptance is completed against Mr. Warn when the letter is posted. While communication of the acceptance is completed against Mr. Anderson when letter of acceptance is received by Mr. Warn (Proposer).
REVOCATION or CANCELLATION :-
It is defined in the following words : " Revocation means "Cancellation". It may be revocation of offer or acceptance. The communication of revocation is completed against the person who makes it. When it is put into a course of transmission so as to be out of the power of the person who makes it as against the person to whom it is made, when it comes to his knowledge".
Revocation of an Offer or Proposal :-
At any time an offer can be revoked before the communication of its acceptance is completed as against the offer but no afterwards.
Example :- Suppose Miss. Reema proposes by letter sent by post to sell her plaza to Mr. Chand accepts the proposal by a letter sent by post.
Now Miss. Reema may revoke her proposal at any time before or at the moment when Mr. Chand posts his letter of acceptance, but not afterwards.
Revocation of Acceptance :-
The acceptor promisee can revoke the acceptance before it reaches to the proposer. If the letter of acceptance is received by the proposer then it will be not revokable.
Example :- In the above example proposal of Mis. Reema to sell her plaza to Mr. Chand is opened for revocation as long as Mr. Chand does not post his letter of acceptance. As Mr. Chand has posted the letter of acceptance. Miss. Reema cannot revoke his proposal.
On the other hand Mr. Chand can revoke his acceptance as long as the letter of acceptance does not reach to Miss. Reema. But as the letter of acceptance reaches to Miss Reema, it finishes the revocation power of Mr. Chand.
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