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Principle: An offer is revoked when notice of revocation is received by the offeree, but only BEFORE the offeree posts an acceptance. Facts: A posts an offer to B on Monday. B posts an acceptance on Wednesday at noon. A posts a revocation on Tuesday which reaches B on Thursday morning. Which proposition is MOST accurate?
AThe contract is concluded — revocation is ineffective because acceptance was posted before revocation was received
BNo contract because revocation was sent before acceptance was posted
CThe contract is voidable at B's option
DThe contract is fully revoked once A posted the revocation
Answer & Solution
Correct answer: A. The contract is concluded — revocation is ineffective because acceptance was posted before revocation was received
Indian Contract Act, ss 4–5: revocation is effective only when COMMUNICATED to the offeree. Since the revocation reached B only on Thursday — after B's acceptance was posted on Wednesday — the revocation came too late. A binding contract had already formed.
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