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X makes a proposal to Y, which Y accepts. But before the acceptance came to the knowledge of X, Y revokes his acceptance by telegram :When is the revocation complete?

  • a)
    When the contents of the telegram come to the knowledge of X

  • b)
    When X accepts the revocation

  • c)
    When the telegram is dispatched

  • d)
    When the telegram is received by X

Correct answer is option 'A'. Can you explain this answer?
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X makes a proposal to Y, which Y accepts. But before the acceptance ca...
The revocation of acceptance is complete when it comes to the knowledge of X. Therefore, the correct answer is option 4, when the contents of the telegram come to the knowledge of X.


According to Section 4 of the Indian Contract Act, 1872, communication of an acceptance is complete when it is put in a course of transmission to the person making the proposal. However, communication of a revocation of acceptance is only complete when it comes to the knowledge of the person who made the proposal.


In this case, Y has accepted the proposal made by X, but before X comes to know about the acceptance, Y revokes his acceptance by telegram. The revocation of acceptance is complete only when it comes to the knowledge of X. This means that if X comes to know about the revocation of acceptance before he receives the acceptance itself, then the revocation will be complete and the contract will not be formed.
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X makes a proposal to Y, which Y accepts. But before the acceptance ca...
Revocation of Acceptance by Telegram

When one party makes a proposal to another party, and the proposal is accepted, a contract is formed between them. However, the acceptance can be revoked by the acceptor before it comes to the knowledge of the proposer. In case of revocation of acceptance by telegram, the question arises as to when the revocation becomes effective.

Options for when the revocation is complete:
a) When the contents of the telegram come to the knowledge of X
b) When X accepts the revocation
c) When the telegram is dispatched
d) When the telegram is received by X

Correct answer:
The revocation becomes effective when the contents of the telegram come to the knowledge of X.

Explanation:
The Indian Contract Act, 1872, provides that a proposal can be revoked at any time before the communication of acceptance is complete against the proposer. Therefore, if the acceptor sends a telegram revoking his acceptance before the proposer receives the acceptance, the acceptance is not complete, and it becomes void.

In the case of revocation of acceptance by telegram, the revocation is effective when the proposer comes to know about it. This is because a telegram is a form of instantaneous communication, and once it is dispatched, it is deemed to have been received by the proposer. Thus, the proposer's knowledge of the revocation is the trigger for the revocation to become effective.

In short, the revocation of acceptance by telegram is complete when the contents of the telegram come to the knowledge of the proposer.
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X makes a proposal to Y, which Y accepts. But before the acceptance ca...
Revocation of Acceptance by Telegram

According to the Indian Contract Act, an acceptance can be revoked at any time before the communication of the acceptance is complete as against the proposer. The communication of acceptance is complete when it is put in a course of transmission to the proposer so as to be out of the power of the acceptor.

In the given scenario, Y has already accepted X's proposal before revoking it by telegram. Now, the question is when does the revocation become complete?

Options:

a) When the contents of the telegram come to the knowledge of X
b) When X accepts the revocation
c) When the telegram is dispatched
d) When the telegram is received by X

Correct Answer: Option 'A'

Explanation:

The revocation of acceptance is complete when it comes to the knowledge of the proposer. Therefore, in this case, the revocation will be complete as soon as X comes to know about the revocation by telegram. It does not matter whether the telegram has been dispatched or received by X or not. The revocation becomes effective as soon as the contents of the telegram are known to X.

Conclusion:

In conclusion, the revocation of acceptance by telegram becomes effective when it comes to the knowledge of the proposer. Therefore, option 'A' is the correct answer.
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X makes a proposal to Y, which Y accepts. But before the acceptance came to the knowledge of X, Y revokes his acceptance by telegram :When is the revocation complete?a)When the contents of the telegram come to the knowledge of Xb)When X accepts the revocationc)When the telegram is dispatchedd)When the telegram is received by XCorrect answer is option 'A'. Can you explain this answer?
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X makes a proposal to Y, which Y accepts. But before the acceptance came to the knowledge of X, Y revokes his acceptance by telegram :When is the revocation complete?a)When the contents of the telegram come to the knowledge of Xb)When X accepts the revocationc)When the telegram is dispatchedd)When the telegram is received by XCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X makes a proposal to Y, which Y accepts. But before the acceptance came to the knowledge of X, Y revokes his acceptance by telegram :When is the revocation complete?a)When the contents of the telegram come to the knowledge of Xb)When X accepts the revocationc)When the telegram is dispatchedd)When the telegram is received by XCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X makes a proposal to Y, which Y accepts. But before the acceptance came to the knowledge of X, Y revokes his acceptance by telegram :When is the revocation complete?a)When the contents of the telegram come to the knowledge of Xb)When X accepts the revocationc)When the telegram is dispatchedd)When the telegram is received by XCorrect answer is option 'A'. Can you explain this answer?.
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