Indian Contract law occupies the most important place in commercial law. Without the law on contracts, it would have been difficult to exercise a trade or any other commercial activity. It is not only the business community that is affected by contract law, but it affects everyone. The purpose of contract law is to ensure that the rights and obligations arising from a contract are respected and that legal remedies are made available to those affected. According to Section 1 of the Indian Contract Act, 1872, this law can be called the Indian Contract Act, 1872.

Communication of Proposal

Communication of a proposal is the very first step towards making any contract. A proposal can be made by various types which are described below:

Kinds of Proposal

1. Express Proposal: A proposal which is made either by word (may be written or spoken) or by conduct, is said to be an express proposal.
2. Implied Proposal: A proposal that is made, apart from the word, is said to be an implied proposal.
3. Specific Proposal: When a proposal is made for a person or a particular class of person, then it is considered as a Specific Proposal.
4. General Proposal: When a proposal is made for each and every person, i.e. the world at large, then any person can accept that general proposal by performing the terms of the proposal.

Essential Conditions for a valid proposal

1. The proposal must be made for the creation of a legal relationship
2. The proposal must be communicated
3. Signifies willingness of proposal to obtain assent to it
4. The proposal must be constituted with a view to obtaining the assents
5. The proposal must contain a Promise
6. The proposal must be certain and definite
7. Must not contain a mere expression of the intention 
8. The proposal must be different from preliminary negotiations 
9. Must not contain negative terms 
10. Must not contain the false statement
11. May be subject to a condition
12. Must contain all the term of the Contract 

Revocation of Proposals and acceptance.

A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterward. 

An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterward.

Revocation how made

A proposal is revoked-

1. by the communication of notice of revocation by the proposer to the other party;
2. by the lapse of the time prescribed in such proposal for its acceptance, or, if no time is so prescribed, by the lapse of a reasonable time, without communication of the acceptance;
3. by the failure of the acceptor to fulfill a condition precedent to acceptance; or
4. by the death or insanity of the proposer, if the fact of the death or insanity comes to the knowledge of the acceptor before acceptance.