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As stated earlier, the right under section 5 of the Contract Act as extracted below is statutory right:

Section 5 in The Indian Contract Act, 1872

5. 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 afterwards. —A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards." An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards….."

According to the apex court statutory right under Section 5 of the Contract Act is conferred. Section 5 says a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer.

Thus the company cannot say contrary to statute that "The company has the right to withdraw the offer without assigning any reasons anytime till the candidate joins".

Criterion here is not notice period of 1 or 2 months. Instead if the employee falls within the ourview of "workman" of ID Act, then after 240 days, these notice periods of 1 or 2 month carry no meaning. Similarly there are other statutory rights conferred with passage of time.

Thanks

Sushil

From India, New Delhi
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