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CONTRACT ACT, 1872
Chapter 1 Nature of Contract
The Law of Contracts: Section 2(b) defines a promise’
Section 2(e) defines an ‘agreement’
Section 2(h) defines a ‘contract’
Section 2(g) & 2(j) prescribe when an agreement, and a contract is said to be Void.
Section 2(i) defines a ‘void able contract’
Section 9 prescribes when a promise is said to be express of implied
Section 10 lists elements, which are essential to form a contract and provides that in certain cases contracts are required to be written, or registered
Section 23 prescribes when a contract is unlawful
What is contract? Contract: An agreement enforceable by law. [Section 2(h)]
Agreement: Every promise and every set of promises forming the consideration for each other. [Section 2(e)]
Promise:
When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Proposal when accepted, becomes a promise.
[Section 2(b)]
Essential elements of a valid contract [Sec 10]
1. Parties to have an intention to create legal obligations through offer and acceptance.
2. Presence of " lawful consideration" i.e. something in return (quid pro quo).
3. Parties to a contact must have capacity (legal ability) to make valid contract.
[Section 11] of Indian Contract Act specifies that every person is competent to contract provide.
(a) is of the age of majority according to the law to which he is subject, and
(b) who is of sound mind and
(c) is not disqualified from contracting by any law to which he is subject
In other words
a) a minor
b) a person of unsound mind (a person of unsound mind can enter into a contract during his lucid intervals) and
c) a person disqualified from contracting by any law to which he is subject, e.g. an alien enemy, foreign sovereigns and accredited representatives of a foreign state, insolvent and convicts are not competent to contract.
4. Free consent should be there. Consent means parties to a contract must agree upon the same thing in the some sense.
Sec. 13: Two or more persons are said to have consented when they agree upon the same thing in the same sense: (Consensus-ad-idem). Consent is free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake (Section 14).
5. The agreement must not be one which the law declares to be either illegal or void. i.e. which is without any legal effects. Illegal i.e. an agreement expressly or impliedly prohibited by law.
Types of Contract:
According to validity: 1. Void contract: [Section 2(j)] A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable"
2. Voidable Contract: An agreement which is enforceable by law at the option of one or more the parties but not at the option of the other or others is a voidable contract.
3. Illegal contract: The contract which the law forbids to be made. The court will not enforce uch a contract also other connected contracts. All illegal agreements void but all void agreements or contracts are not necessarily illegal.
4. Unenforceable contract: Where a contract is good in substance but because of some technical defect i.e. absence in writing, barred by limitation etc. one or both the parties cannot sue upon it.
According to Formation
1. Express contracts: Which is made by words wither spoken or written. [Section 9] As the proposal or acceptance of any promise is made in words, the promise is said to be express.
2. Implied 'Contract: [Section 9] When a proposal or acceptance is made otherwise than in words.
3. Tacit Contract: When it has to be inferred from the conduct of the parties. e.g. obtaining cash through automatic teller machine
On the basis of performance
i. Executed Contract: If the consideration for the promise in a contract is given or executed, such are known as contract with executed consideration.
ii. Executory Contract: When the reciprocal promises or obligation which serves as consideration is to be performed in future.
(a) Unilateral Contract: It is a one-sided contract in which only one party has to perform his promise or obligation to do or forbear.
(b) Bilateral contract: Where the obligation or promise in a contract is outstanding on the part of both the parties.
a) Contract of Record: English law classifies the contract into i) Formal and ii) Simple
Formal contracts include a) Contracts of record and b) Contracts under Seal
It is either a judgement of a court or a recognisance.
A judgment is an obligation imposed by a court upon one or more persons.
As a matter of fact it is not a contract in the real sense, since it is not based upon any agreement between the two parties.
A recognisance is a written acknowledgement of a debt due to the State. It is usually met with in connection with criminal proceedings.
Contracts of record derive their binding force from the authority of the Court.
b) Contracts under Seal: It is one which derived its binding force from its from along. It is writing and is signed, sealed and delivered by the parties.
It is also called a deed or a specialty contract.
Simple contract
All contracts other than the contracts by deed and contracts on record are simple contracts.
These contracts may be made either expressly by word of mouth or in writing, or implied from the conduct of the parties.
Some important comparisons
Agreement and Contract
Agreement Enforceability – An agreement may or may not be enforceable at law. For example, social agreements are generally not enforceable while business agreements are enforceable at law.
Effect: An agreement is not always a binding on the concerned parties.
Scope: All agreements are not contracts.
Illegal and Void agreements
Contract A contact is an agreement, which is enforceable at law.
A contract is always concluded and binding on the concerned parties.
All contracts are agreements.
Illegal Agreement and Void Agreement
Illegal Agreement Scope – These agreements are narrower in scope. All illegal agreements are void.
Effect on collateral transaction Collateral transaction of an illegal contract also becomes illegal and can not be enforced.
Punishment –Parties may be punished for making illegal agreement.
Void Agreement These agreements are wider in scope. An agreement may be void because of a reason other than illegality.
Collateral transaction of an agreement which is void for a reason other, than illegality are enforceable at law.
Being void does not make a contract punishable.
Void and Voidable Contract
Void Contract Definition – When a contract ceases to be enforceable at law, it becomes a void contract.
Status – A void contract cannot create any legal rights. It is a total nulity.
Nature – A void contact is valid when it is made. But subsequently it be comes void due to one reason or the other.
Rights - A void contract does not provide any legal right to the parties to the contract.
Effect – When a contract is void because of illegality its collateral transactions also becomes void.
Voidable Contract It is a contract, which is enforceable by law at he option of one or more parties thereof, but not at the option of others.
A voidable contract takes its full and proper legal effect unless it is disputed and set aside by the person entitled to do so.
A contract may be voidable since very beginning or may subsequently become voidable.
A voidable contract gives right to the aggrieved party to rescind the contract and claim the damages, etc in certain cases.
A voidable contract does not effect the collateral transactions.
Void Agreement and Void Contract
Void Agreement It is an agreement. It never takes form of a contract. It is a nullity since very beginning.
Void Contract It is a contract.
When it is formed it is perfectly valid. Subsequently it becomes a nullity.
Chapter 2 Proposal or Offer
In this Chapter, we are going to discuss the following sections of the Indian Contract Act, 1872
Section 2(a), defines a proposal and conveys that when a proposal is (b) & (c) accepted it becomes a promise.
Section 3 provides that the communication of a proposal, its acceptance or revocation can be made by an act or omission.
Section 4 explains when the communication of a proposal, an acceptance, and revocation is complete.
Section 5 explains when a proposal, and an acceptance can be revoked.
Section 6 explains how a proposal can be revoked
Section 7 provides that an acceptance must be unconditional and should be accepted in the manner prescribed in the pro- postal
Section 8 enumerates certain acts, which amounts to the acceptance of the proposal.
Section 9 conveys that the promises (accepted proposals) may be express or implied.
Proposal offer: [Section 2 (a)]
It is a medium through which a person signifies to another his willingness to do or
to abstain from doing anything
with a view to obtaining the assent of that other to such act or abstinence
Thus, for a valid offer, the party making it must express his willingness 'to do' or ' not to do' (abstinence) something.
Rules as to offer: (i) The offer must be capable of creating legal relation:
(ii) The offer must be certain, definite and not vague:
(iii) The offer must be expressed or implied.
(iv) The offer must be distinguished from an invitation to offer.
(v) An offer may be specific or general.
(vi) The offer must be communicated.
(vii) The offer must be made with a view to obtaining the consent of the offeree
(viii) An offer may be conditional
The offer should not contain a term the noncompliance of which would amount to acceptance.
Classification of offer:
a) General Offer:
It is an offer made to the public in general and hence anyone can accept and do the desired act.
b) Special Offer:
When offer is made to a definite person, it is known as specific offer and such offers can be accepted only by that specified; person.
c) Cross offers:
When two parties exchange identical offers in ignorance at the time of each other's offer, the offers are called Cross offers.
d) Counter offer:
When the offeree offers to qualified acceptance of the offer subject to modifications and variations in the terms of original offer, he is said to have made a counter offer. Counter-offer amounts to rejection of the original offer.
e) Standing, open or Continuing offer:
An offer which is allowed to remain open for acceptance over a period of times is known as a standing, open or continuing offer. Tender for supply of goods is a kind of standing offer.
Offer and Invitation to Offer:
The offer or must have expressed his willingness to contract in terms of his offer with such finality that the only thing to be awaited is the assent of the other party.
Where a party without expressing his final willingness, proposes certain terms on which he is willing to negotiate, he does not make an offer, he only invites the other party to make an offer on those terms.
e.g. where a person has a stock of books to sell or houses to let, in this position he is just making an invitation to make an offer.
Acceptance [Section 2 (b)]
(a) Meaning: A proposal or offer is said to have been accepted when the person to whom the proposal is made signifies his assent to the proposal to do or not to do something
(b) Offer is a train of gunpowder while acceptance is lighted match: (Sri William Anson). After offer is accepted then only it becomes contract. So an offer may laps for want of acceptance or be revoked before acceptance.
Rules Relating to Acceptance 1. Acceptance must be absolute and unqualified (Section 7): An acceptance with a variation is no acceptance.
2. Communicated to offeror by offeree:
3. Acceptance must be in the mode prescribed;
4. Time: Acceptance must be given within a reasonable time and before the offer lapses.
5. Mere silence is not acceptance: Acceptance may be expressed or implied. Acceptance must be given after knowing about the offer. Acceptance must be given by the person to whom the proposal is made.
Acceptance by conduct or by word of mouth:
Communication of offer and acceptance
When the contracting parties are face to face then acceptance is made instantly but when there is a distance between parties and communication is to be made by telephone or post then we should know the exact time when the offer or acceptance is made or complete.
Communication of offer: The Communication of an offer is complete when it comes to the knowledge of the person to whom it is made (Section 4).
Communication of acceptance:
Communication of an acceptance is complete
(i) As against the proposer where it is put in course of transmission to him so as to be out of the power of the acceptor to withdraw the same.
(ii) As against the acceptor when it comes to the knowledge of the proposer.
When a proposal is accepted by a letter sent by post the communication of acceptance will be complete as against the proposer when the letter of acceptance is posted and as against the acceptor when the letter reaches the proposer.
Special Terms In A Contract
Where any special terms are to be included in a contract, these must be duly brought to the notice of the offeree at the time when the proposal is made. If it is not done and if the contracts subsequently entered into, the offeree will not be bound by them.
Also these terms should be presented in such a manner that a reasonable man can become aware of them before he enters into a contract.
Certain conditions are attached to transactions like purchase of a ticket for a journey or deposit of luggage in a clock room.
Wherever on the face of a ticket the words “For conditions see back” are printed, the person concerned is as a matter of law held to be bound by the conditions subject to which the ticket is issued whether he takes care to read them or not.
The fact that he did not or could not read does not alter the legal position.
Communication of performance:
Some times, the conditions of the proposal may include a term requiring the offeree to communicate the performance to the offeror. In such a case, mere performance without communication will not amount to an acceptance of the proposal. But in the absence of such a term being included mere performance of an act specified by the proposer will constitute acceptance. Following was concluded in the Case of Carlill v. Carbolic Smoke ball Co.
(i) an offer, to be capable of acceptance must contain definite promise by the offeror that he would be bound provided the terms specified by him are accepted.
(ii) An offer may be made either to a particular person or to the public at large and
If an offer is made in the form of a promise in return for an act the performance of that act even without any communication there of is to be treated as an acceptance of the offer.
Revocation
Under section 4, the communication of a revocation is complete;
(i) 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 or the person who makes it;
(ii) As against the person to whom it is made when it comes to his knowledge.
(iii) Under Sec.5, a proposal may be revoked at any time, before the communication of its acceptance is complete as against the proposer. An acceptance may be revoked at any time before the communication of acceptance is complete as against the acceptor
Revocation of proposal otherwise than by communication :
(1) By lapse of time fixed for acceptance or lapse of reasonable time if on time for acceptance has been specified [Section 6 (2)] A proposal is not bound to keep his proposal open indefinitely the reason being that it would amount to a promise without consideration and such a promise is unenforceable.
(2) By the failure of the acceptor to fulfill a condition precedent to acceptance Section 6 of the Act contains the law on this subject. A proposal is also revoked by the failure of the acceptor to fulfill conditions precedent to the acceptance.
By the death or insanity of the proposer. Death or insanity of the proposer under the Indian law operates as the revocation of the proposal only if the fact to the death or insanity has come to the knowledge of the acceptor.
CONTRACT ACT, 1872
Chapter 1 Nature of Contract
The Law of Contracts: Section 2(b) defines a promise’
Section 2(e) defines an ‘agreement’
Section 2(h) defines a ‘contract’
Section 2(g) & 2(j) prescribe when an agreement, and a contract is said to be Void.
Section 2(i) defines a ‘void able contract’
Section 9 prescribes when a promise is said to be express of implied
Section 10 lists elements, which are essential to form a contract and provides that in certain cases contracts are required to be written, or registered
Section 23 prescribes when a contract is unlawful
What is contract? Contract: An agreement enforceable by law. [Section 2(h)]
Agreement: Every promise and every set of promises forming the consideration for each other. [Section 2(e)]
Promise:
When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Proposal when accepted, becomes a promise.
[Section 2(b)]
Essential elements of a valid contract [Sec 10]
1. Parties to have an intention to create legal obligations through offer and acceptance.
2. Presence of " lawful consideration" i.e. something in return (quid pro quo).
3. Parties to a contact must have capacity (legal ability) to make valid contract.
[Section 11] of Indian Contract Act specifies that every person is competent to contract provide.
(a) is of the age of majority according to the law to which he is subject, and
(b) who is of sound mind and
(c) is not disqualified from contracting by any law to which he is subject
In other words
a) a minor
b) a person of unsound mind (a person of unsound mind can enter into a contract during his lucid intervals) and
c) a person disqualified from contracting by any law to which he is subject, e.g. an alien enemy, foreign sovereigns and accredited representatives of a foreign state, insolvent and convicts are not competent to contract.
4. Free consent should be there. Consent means parties to a contract must agree upon the same thing in the some sense.
Sec. 13: Two or more persons are said to have consented when they agree upon the same thing in the same sense: (Consensus-ad-idem). Consent is free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake (Section 14).
5. The agreement must not be one which the law declares to be either illegal or void. i.e. which is without any legal effects. Illegal i.e. an agreement expressly or impliedly prohibited by law.
Types of Contract:
According to validity: 1. Void contract: [Section 2(j)] A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable"
2. Voidable Contract: An agreement which is enforceable by law at the option of one or more the parties but not at the option of the other or others is a voidable contract.
3. Illegal contract: The contract which the law forbids to be made. The court will not enforce uch a contract also other connected contracts. All illegal agreements void but all void agreements or contracts are not necessarily illegal.
4. Unenforceable contract: Where a contract is good in substance but because of some technical defect i.e. absence in writing, barred by limitation etc. one or both the parties cannot sue upon it.
According to Formation
1. Express contracts: Which is made by words wither spoken or written. [Section 9] As the proposal or acceptance of any promise is made in words, the promise is said to be express.
2. Implied 'Contract: [Section 9] When a proposal or acceptance is made otherwise than in words.
3. Tacit Contract: When it has to be inferred from the conduct of the parties. e.g. obtaining cash through automatic teller machine
On the basis of performance
i. Executed Contract: If the consideration for the promise in a contract is given or executed, such are known as contract with executed consideration.
ii. Executory Contract: When the reciprocal promises or obligation which serves as consideration is to be performed in future.
(a) Unilateral Contract: It is a one-sided contract in which only one party has to perform his promise or obligation to do or forbear.
(b) Bilateral contract: Where the obligation or promise in a contract is outstanding on the part of both the parties.
a) Contract of Record: English law classifies the contract into i) Formal and ii) Simple
Formal contracts include a) Contracts of record and b) Contracts under Seal
It is either a judgement of a court or a recognisance.
A judgment is an obligation imposed by a court upon one or more persons.
As a matter of fact it is not a contract in the real sense, since it is not based upon any agreement between the two parties.
A recognisance is a written acknowledgement of a debt due to the State. It is usually met with in connection with criminal proceedings.
Contracts of record derive their binding force from the authority of the Court.
b) Contracts under Seal: It is one which derived its binding force from its from along. It is writing and is signed, sealed and delivered by the parties.
It is also called a deed or a specialty contract.
Simple contract
All contracts other than the contracts by deed and contracts on record are simple contracts.
These contracts may be made either expressly by word of mouth or in writing, or implied from the conduct of the parties.
Some important comparisons
Agreement and Contract
Agreement Enforceability – An agreement may or may not be enforceable at law. For example, social agreements are generally not enforceable while business agreements are enforceable at law.
Effect: An agreement is not always a binding on the concerned parties.
Scope: All agreements are not contracts.
Illegal and Void agreements
Contract A contact is an agreement, which is enforceable at law.
A contract is always concluded and binding on the concerned parties.
All contracts are agreements.
Illegal Agreement and Void Agreement
Illegal Agreement Scope – These agreements are narrower in scope. All illegal agreements are void.
Effect on collateral transaction Collateral transaction of an illegal contract also becomes illegal and can not be enforced.
Punishment –Parties may be punished for making illegal agreement.
Void Agreement These agreements are wider in scope. An agreement may be void because of a reason other than illegality.
Collateral transaction of an agreement which is void for a reason other, than illegality are enforceable at law.
Being void does not make a contract punishable.
Void and Voidable Contract
Void Contract Definition – When a contract ceases to be enforceable at law, it becomes a void contract.
Status – A void contract cannot create any legal rights. It is a total nulity.
Nature – A void contact is valid when it is made. But subsequently it be comes void due to one reason or the other.
Rights - A void contract does not provide any legal right to the parties to the contract.
Effect – When a contract is void because of illegality its collateral transactions also becomes void.
Voidable Contract It is a contract, which is enforceable by law at he option of one or more parties thereof, but not at the option of others.
A voidable contract takes its full and proper legal effect unless it is disputed and set aside by the person entitled to do so.
A contract may be voidable since very beginning or may subsequently become voidable.
A voidable contract gives right to the aggrieved party to rescind the contract and claim the damages, etc in certain cases.
A voidable contract does not effect the collateral transactions.
Void Agreement and Void Contract
Void Agreement It is an agreement. It never takes form of a contract. It is a nullity since very beginning.
Void Contract It is a contract.
When it is formed it is perfectly valid. Subsequently it becomes a nullity.
Chapter 2 Proposal or Offer
In this Chapter, we are going to discuss the following sections of the Indian Contract Act, 1872
Section 2(a), defines a proposal and conveys that when a proposal is (b) & (c) accepted it becomes a promise.
Section 3 provides that the communication of a proposal, its acceptance or revocation can be made by an act or omission.
Section 4 explains when the communication of a proposal, an acceptance, and revocation is complete.
Section 5 explains when a proposal, and an acceptance can be revoked.
Section 6 explains how a proposal can be revoked
Section 7 provides that an acceptance must be unconditional and should be accepted in the manner prescribed in the pro- postal
Section 8 enumerates certain acts, which amounts to the acceptance of the proposal.
Section 9 conveys that the promises (accepted proposals) may be express or implied.
Proposal offer: [Section 2 (a)]
It is a medium through which a person signifies to another his willingness to do or
to abstain from doing anything
with a view to obtaining the assent of that other to such act or abstinence
Thus, for a valid offer, the party making it must express his willingness 'to do' or ' not to do' (abstinence) something.
Rules as to offer: (i) The offer must be capable of creating legal relation:
(ii) The offer must be certain, definite and not vague:
(iii) The offer must be expressed or implied.
(iv) The offer must be distinguished from an invitation to offer.
(v) An offer may be specific or general.
(vi) The offer must be communicated.
(vii) The offer must be made with a view to obtaining the consent of the offeree
(viii) An offer may be conditional
The offer should not contain a term the noncompliance of which would amount to acceptance.
Classification of offer:
a) General Offer:
It is an offer made to the public in general and hence anyone can accept and do the desired act.
b) Special Offer:
When offer is made to a definite person, it is known as specific offer and such offers can be accepted only by that specified; person.
c) Cross offers:
When two parties exchange identical offers in ignorance at the time of each other's offer, the offers are called Cross offers.
d) Counter offer:
When the offeree offers to qualified acceptance of the offer subject to modifications and variations in the terms of original offer, he is said to have made a counter offer. Counter-offer amounts to rejection of the original offer.
e) Standing, open or Continuing offer:
An offer which is allowed to remain open for acceptance over a period of times is known as a standing, open or continuing offer. Tender for supply of goods is a kind of standing offer.
Offer and Invitation to Offer:
The offer or must have expressed his willingness to contract in terms of his offer with such finality that the only thing to be awaited is the assent of the other party.
Where a party without expressing his final willingness, proposes certain terms on which he is willing to negotiate, he does not make an offer, he only invites the other party to make an offer on those terms.
e.g. where a person has a stock of books to sell or houses to let, in this position he is just making an invitation to make an offer.
Acceptance [Section 2 (b)]
(a) Meaning: A proposal or offer is said to have been accepted when the person to whom the proposal is made signifies his assent to the proposal to do or not to do something
(b) Offer is a train of gunpowder while acceptance is lighted match: (Sri William Anson). After offer is accepted then only it becomes contract. So an offer may laps for want of acceptance or be revoked before acceptance.
Rules Relating to Acceptance 1. Acceptance must be absolute and unqualified (Section 7): An acceptance with a variation is no acceptance.
2. Communicated to offeror by offeree:
3. Acceptance must be in the mode prescribed;
4. Time: Acceptance must be given within a reasonable time and before the offer lapses.
5. Mere silence is not acceptance: Acceptance may be expressed or implied. Acceptance must be given after knowing about the offer. Acceptance must be given by the person to whom the proposal is made.
Acceptance by conduct or by word of mouth:
Communication of offer and acceptance
When the contracting parties are face to face then acceptance is made instantly but when there is a distance between parties and communication is to be made by telephone or post then we should know the exact time when the offer or acceptance is made or complete.
Communication of offer: The Communication of an offer is complete when it comes to the knowledge of the person to whom it is made (Section 4).
Communication of acceptance:
Communication of an acceptance is complete
(i) As against the proposer where it is put in course of transmission to him so as to be out of the power of the acceptor to withdraw the same.
(ii) As against the acceptor when it comes to the knowledge of the proposer.
When a proposal is accepted by a letter sent by post the communication of acceptance will be complete as against the proposer when the letter of acceptance is posted and as against the acceptor when the letter reaches the proposer.
Special Terms In A Contract
Where any special terms are to be included in a contract, these must be duly brought to the notice of the offeree at the time when the proposal is made. If it is not done and if the contracts subsequently entered into, the offeree will not be bound by them.
Also these terms should be presented in such a manner that a reasonable man can become aware of them before he enters into a contract.
Certain conditions are attached to transactions like purchase of a ticket for a journey or deposit of luggage in a clock room.
Wherever on the face of a ticket the words “For conditions see back” are printed, the person concerned is as a matter of law held to be bound by the conditions subject to which the ticket is issued whether he takes care to read them or not.
The fact that he did not or could not read does not alter the legal position.
Communication of performance:
Some times, the conditions of the proposal may include a term requiring the offeree to communicate the performance to the offeror. In such a case, mere performance without communication will not amount to an acceptance of the proposal. But in the absence of such a term being included mere performance of an act specified by the proposer will constitute acceptance. Following was concluded in the Case of Carlill v. Carbolic Smoke ball Co.
(i) an offer, to be capable of acceptance must contain definite promise by the offeror that he would be bound provided the terms specified by him are accepted.
(ii) An offer may be made either to a particular person or to the public at large and
If an offer is made in the form of a promise in return for an act the performance of that act even without any communication there of is to be treated as an acceptance of the offer.
Revocation
Under section 4, the communication of a revocation is complete;
(i) 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 or the person who makes it;
(ii) As against the person to whom it is made when it comes to his knowledge.
(iii) Under Sec.5, a proposal may be revoked at any time, before the communication of its acceptance is complete as against the proposer. An acceptance may be revoked at any time before the communication of acceptance is complete as against the acceptor
Revocation of proposal otherwise than by communication :
(1) By lapse of time fixed for acceptance or lapse of reasonable time if on time for acceptance has been specified [Section 6 (2)] A proposal is not bound to keep his proposal open indefinitely the reason being that it would amount to a promise without consideration and such a promise is unenforceable.
(2) By the failure of the acceptor to fulfill a condition precedent to acceptance Section 6 of the Act contains the law on this subject. A proposal is also revoked by the failure of the acceptor to fulfill conditions precedent to the acceptance.
By the death or insanity of the proposer. Death or insanity of the proposer under the Indian law operates as the revocation of the proposal only if the fact to the death or insanity has come to the knowledge of the acceptor.
