The issue in a given situation is whether Mr Robert’s revocation of offer by post is effective as against Mr James.
Section 2(h) of the contract 1950 defines contract as an agreement enforceable by law. In order for an agreement to be enforceable by law, it must consist of six essential elements which are offer, acceptance, consideration, intention to create legal relation, capacity and certainty. Section 5(1) contract act: a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but no afterwards. Section 6 contracts act- a proposal is revoked (a) by the communication of notice of revocation by the proposer to the other party. (b) By the lapse of the time prescribed in the proposal for its acceptance. (c) By the failure of the acceptor to fulfill a condition precedent to acceptance. (d) By the death or mental disorder of the proposer. Section 4(2) contract act- proposer is bound when the offeree posts the letter of acceptance, even though the proposer has no knowledge of the acceptance. When the letter is posted is posted, the acceptor has no longer any control over it. The transaction becomes binding irrespective of any delay or disappearance in the course of transit. Acceptance is complete upon posting.
In the case of Adams v Lindsell, the Defendants mailed their offer to sell on the 2nd of September, 1817. The Defendants’ letter was misdirected and did not reach the plaintiffs until 7:00 p.m., Friday the 5th. That night, Plaintiffs accepted Defendant’s offer, and mailed it directly back in a timely manner. It was received by Defendant on the 9th, but they expected to receive it on the 7th and, in the meanwhile, had offered and sold their wool to another person. Plaintiffs brought suit for the losses they sustained by not receiving the fleeces. It was held by there was a valid contract which came