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Contract Act 1950
Of the communication, acceptance and reveocation of proposals
The communication of proposals, the acceptance of proposals, and the revocation of proposals, respectively, are deemed to be made by any act or omission of the party proposing, accepting, or revoking, by which he intend to communicate the proposal, acceptance, or revocation or which has the effect of communication it.
Communication when complete.
When it comes to the knowledge of the person to whom it is made
The communication of an acceptance is complete
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 and as against the acceptor, when it comes to the knowlege of the proposer.
The communication of a revocation is complete
As against the person who makes it, when is put into a course of transmission to the whom it is made, so as to be of the power of the person who makes it and as against the person to whom it is made, when it comes to his knowlege.
Revocation of proposal and acceptances.
A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.
An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterward
E.g :
A proposes, by a letter sent by post to sell his house to B
B accepts the proposal by a letter sent by post
A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance, but not afterwards.
B may revoke his acceptance at any time before or at the moment when the letter communicating it reaches A, but not afterwards.
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