“A proposal may be revoked at any time before that communication of its acceptance is complete as against the proposer, but not afterwards.”
Revocation
Of Proposal And Acceptance
“A proposal may be revoked at any time before that communication of its
acceptance is complete as against the proposer, but not afterwards.”
Communication
Of Revocation
“The communication of a
revocation is complete… As against the person who makes it, when it is put into
a course of transmission to the person to whom it is made, 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.” Agreement
to Agree in Future
Agreement to enter into an
agreement upon terms to be settled afterwards between the parties is a
contradiction in terms. It is absurd to say that a man enters into an agreement
till the terms of agreement are settled; until those terms are settled, he is
perfectly at liberty to retire from the bargain”. Consideration
And Competence To Contract
Consideration is one of the
elements of obligation. An agreement becomes enforceable only if it is
supported by consideration. (Sec. 10) “All agreements are contracts if they are
made… for a lawful consideration…” It clearly shows that consideration is an
important pre-requisite of a valid contract. (Sec.25) “An agreement made
without consideration is void…” Hence the rule is “No Consideration, No
Contract.”
Tags : Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
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