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CMA Foundation · Fundamentals of Business Laws and Business Communication · Essential Elements of a Contract, Offer and Acceptance

Kumar offers to sell his van to Iyer and says the offer stays open for 10 days. Iyer has not accepted. Which of the following does NOT by itself revoke the proposal under Section 6?

Iyer merely saying he is thinking about the offer does not revoke it. Section 6 recognises only notice of revocation, lapse of time, failure of a condition precedent, and the proposer's death or insanity known before acceptance, so the offer stays open.

  1. AKumar's notice of revocation reaches Iyer on day 4
  2. BTen days pass without Iyer communicating acceptance
  3. CIyer tells Kumar on day 3 that he is thinking about itCorrect
  4. DKumar dies on day 5 and Iyer learns of it on day 6 before accepting

Explanation

Section 6 lists revocation by communicated notice, lapse of the prescribed time, failure to fulfil a condition precedent, and the proposer's death or insanity known to the acceptor before acceptance. Saying he is thinking about it is none of these, so the offer remains open. The other three options each fall within Section 6.

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