Termination of an Offer Flashcards
How can a contract be terminated?
- Revocation
- Rejection
- Lapse of time
- Death
When may a contract be revoked?
A contract can be revoked at any time, though it must be communicated
Who can communicate revocation?
It doesn’t need to be from the offeror providing the person communicating is reliable
What was held in Routledge v Grant?
The contract had been validly revoked
Best CJ said that “the contract must be mutual: both or neither parties must be bound by it”
How can an offer made to the general public be revoked?
- Setting a time limit
- Expiry of a reasonable period of time
- Publishing a revocation notice the same way a contract was made
What was held in Dickinson v Dodds?
A reliable person who was known to both Dickinson and Dodds communicated the revocation. Revocation was successful
What is rejection?
Once the offer is rejected it cannot be accepted
What happens if an offer is made to multiple people and one person rejects it?
If the offer is made to multiple people, a rejection made by one person does not mean that others cannot accept it
What is a counter-offer?
A response to an offer that materially alters the terms of a contract. It is a form of rejection
What was held in Hyde v Wrench?
Hyde made a counter-offer proposal and so could not accept the previous offer made
What is a lapse of time?
If the offer included a specific duration, as soon as it expires there is no offer
What happens if there is no specified period of expiry?
The contract will expire a “reasonable” time after the offer
What was held in Ramsgate Victoria Hotel v Montefiore?
The offer had lapsed due to a long period of time between offer and acceptance
What happens if the offeree dies?
The offer ends and his estate cannot accept the offer, though can make a new one
What happens if an offeror dies?
An offeror can still accept the offer until they learn of the death. An exception for this is when the contract is for a personal service
