In: Accounting
(i) A offers to sell his goods to B by a letter posted on 1st March. B receives A 's letter on 3rd March. Can A revoke his offer? (ii)B posts his letter of acceptance on 4th March. A receive B's acceptance on 6th March. Can B revoke his acceptance?
A can revoke his offer to sell goods to B anytime before the communication of its acceptance by B is complete against A, but not afterwards.
Communication of acceptance against the proposer is complete when it is put in the course of transmission to him so as to be out of the power of acceptor.
In the given case, 4th March is the communication of acceptance against the proposer i.e. A. A can revoke his offer before completion of the communication of acceptance against him i.e. 4th March (date of putting acceptance in transmission).
The communication of acceptance is complete against the acceptor when it comes to the knowledge of the proposer.
Acceptance of offer can be revoked anytime before the communication of the acceptance is completed against the acceptor, but not afterwards.
In the given case, 6th March is the date when The proposer i.e. A comes into the knowlege of acceptance by B.
B can revoke his acceptance before A comes into the knowledge of it i.e. 6th March.
A can revoke his offer before B posts his letter of acceptance i.e. 4th March.
B can revoke his acceptance before the letter of acceptance reaches A i.e. 6th March.
( The solution is made by following the provisions of Indian Contract Act, 1872)