Source: Jan2026 Exam Q1(a)7 Marks
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Question Scenario

Bright Scholars is a prestigious school in Delhi. The school invited online applications from eligible students for 100 seats of preschool classes. The school indicated in the application form that the list of provisionally selected students would be displayed on the school notice board and website on 15th April, 2025. Those students, who will pay the admission fees online and physically, submit all the documents prescribed in the application by 18th April, 2025 will be confirmed. Vishal's son Aakash was provisionally selected Vishal paid the fees online on 16th April, 2025 but, failed to submit the prescribed documents by 18th April, 2025. On 19th April, 2025 Aakash's admission was cancelled on account of non-submission of documents without informing Vishal and all the fees paid by him was refunded to his account by Management of school. Vishal contended that he was not informed about cancellation of admission. As he already paid the fees before time, Aakash admission could not be cancelled by school management. On the other hand, he could not submit the documents as he was out of town from 16thApril 2025 to 20th April, 2025. Analyse with reference to the provisions of the Indian Contract Act, 1872, whether the school's action to cancel the admission of Aakash without communication was valid?

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Suggested Answer

Revocation of Proposal otherwise than by Communication: According to the provisions of Section 6 of the Indian Contract Act, 1872, when a proposal is made, the proposer may not wait indefinitely for its acceptance. The offer can be revoked otherwise than by communication or sometimes by lapse of time. (i) By Lapse of Time: The time for acceptance can lapse if acceptance is not given within the specified time and where no time is specified, then within a reasonable time period without communication of the acceptance, reason being the proposer should not be made to wait indefinitely. (ii) By non-fulfilment of condition precedent: Where the acceptor fails to fulfil a condition precedent to acceptance the proposal gets revoked [Section 6(3)]. Failure to satisfy any condition will result in lapse of proposal. As stated earlier ‘condition precedent’ to acceptance prevents an obligation from coming into existence until the condition is satisfied. In the instant case, the school indicated in the application form that provisionally selected students who have paid the admission fee and submitted all the documents by 18th April, 2025 will be confirmed. Vishal paid the admission fee for his son Aakash on 16th April, 2025 but failed to submit the prescribed documents by 18th April 2025. On 19th April, 2025 Aakash’s admission was cancelled on account of non-submission of documents without informing Vishal and all the fee was refunded. As both the conditions regarding payment of admission fee and submission of documents till 18th April 2025 were the conditions precedent for Aakash’s admission, the school’s action to cancel the admission of Aakash without communication was valid. Vishal’s absence from town from 16th April 2025 to 20th April 2025 was no excuse. Thus, offer can be revoked otherwise than by communication. The school's action to cancel the admission of Vishal is valid.

Exam Strategy Tip

When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.

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