1. Core Legal Answer & Context: The statement "Revocation of proposal is death of the proposal" succinctly captures a fundamental principle of contract law: an offer (or proposal) does not create a legal obligation until it is accepted. Before acceptance, the proposer (offeror) has the right to withdraw or revoke their proposal. Once a proposal is effectively revoked, it ceases to exist, meaning it can no longer be accepted by the offeree to form a binding contract. In essence, the potential for a contract, which existed while the proposal was open, is extinguished, hence its 'death'. This principle ensures that parties are not indefinitely bound by their offers and can change their minds before a mutual agreement is reached.

Manners of Revocation (Section 6, Indian Contract Act, 1872): The Indian Contract Act, 1872, specifies several ways in which a proposal can be revoked:

• By the Communication of Notice of Revocation (Section 6(1)): The most direct way to revoke a proposal is for the proposer to communicate their intention to withdraw the offer to the offeree. The revocation is complete as against the proposer when it is put into a course of transmission to the offeree, so as to be out of the power of the proposer. It is complete as against the offeree when it comes to their knowledge (Section 4). This means the offeree must actually be aware of the revocation for it to be effective against them.
• By Lapse of Time (Section 6(2)):
  • If a time limit is prescribed in the proposal for its acceptance, and that time expires without the proposal being accepted, the proposal is automatically revoked.
  • If no time limit is prescribed, the proposal is revoked by the lapse of a 'reasonable time' without communication of acceptance. What constitutes a 'reasonable time' depends on the nature of the contract, the subject matter, and the circumstances of the case.
• By Failure of the Acceptor to Fulfill a Condition Precedent (Section 6(3)): If the proposal specifies a condition that must be fulfilled before acceptance, and the offeree fails to fulfill that condition, the proposal is revoked. For example, if an offer to sell a car is conditional on the buyer obtaining a loan by a certain date, and the buyer fails to do so, the offer is revoked.
• By the Death or Insanity of the Proposer (Section 6(4)): A proposal is revoked by the death or insanity of the proposer, if the fact of their death or insanity comes to the knowledge of the acceptor before acceptance. If the acceptor accepts the proposal without knowledge of the proposer's death or insanity, a valid contract may still be formed.
• By Counter-Offer: Although not explicitly listed in Section 6, a counter-offer made by the offeree implicitly rejects the original proposal, thereby revoking it. The offeree cannot then go back and accept the original offer.
• By Subsequent Illegality or Destruction of Subject Matter: If, before acceptance, the subject matter of the proposal is destroyed, or the contract becomes illegal, the proposal is automatically revoked.

2. Relevant Statutes and Sections:

• Indian Contract Act, 1872:
  • Section 4: Communication when complete (regarding revocation).
  • Section 5: Revocation of proposals and acceptances.
  • Section 6: Revocation how made.

3. Important Landmark Cases:

• Payne v. Cave (1789) 3 Term Rep 148: This English case established the principle that an offer can be revoked at any time before acceptance. In an auction, the bidder (offeror) was allowed to withdraw his bid before the hammer fell (acceptance).
• Henthorn v. Fraser [1892] 2 Ch 27: This case clarified that revocation of an offer must be communicated to the offeree to be effective. An offer sent by post could be accepted by post, but revocation of that offer was not effective until it reached the offeree.

4. Clear Conclusion: Revocation is a critical mechanism in contract law that allows a proposer to withdraw their offer before it ripens into a binding agreement through acceptance. The various manners of revocation, as outlined in the Indian Contract Act, ensure clarity and fairness, preventing parties from being indefinitely bound by unaccepted proposals and providing clear rules for when a proposal effectively 'dies' and can no longer form the basis of a contract.