Revocation of an offer Flashcards
When may an offer be revoked
at any time before acceptance
Which case indicated that revocation must eb communicated to the offered before an acceptance takes place
Byrne V Van Tienhoven: (D posted an offer, and the posted a revocation 3 days later. While this had happened, C had received the offer and accepted by telegram. (PAR applicable hence accepted immediately). C received revocation on the 20th hence the contract had actually been concluded)
Which case indicated that the revocation need not be communicate to the offeror
Dickinson V Dodds- (3rd party communicated held sufficient. Dodds tried to sell the house on Wednesday, and promised to keep the offer until Thursday. Upon hearing nothing he withdrew the offer. An acceptance was then tried to be made on Friday. CoA held that offer had not been accepted as it had been validly withdrawn
What are the two approaches concerning revocation of a unilateral offer
It depends on when there is acceptance.
1) acceptance on commitment of performance or 2) On completion of performance requested
What is the implication if acceptance is on commencement of performance
the offeree accepts by starting the act. But the promise is not enforceable untill performance is complete. Therefore, a revocation after commencement of performance is ineffective. Errington V Errington (Purchased house for son and paid a lump sum with balance financed towards the mortgage. Promised that if they paid all the mortgage instalments he would transfer the house. F died, leaving all property to his wife. The daughter in-law had a contractual right to occupy the house as long as continued to pay the instalments. Denning; father promise generated a unilateral contract, binding once performance commenced, but wold cease to bind if performance left incomplete.
What is the implication if acceptance occurs by completing the requested act
The offeree accepts by completing performance of the req uested act. To protect against unfair revocation a second offer is implied, namely ‘if you commence performance, I will not impede your completion or lead you to desist from completing’. Commencing performance accepts this implied second offer. So the revocation can be effective, but constitutes a breach of the implied contract. Daulia Ltd V Four Milbank Nominees Ltd (C sought to enforce an oral promise to sell an interest in land if C attend D’s office with a draft contract in terms already agreed. Held by attending the office with the draft and banker’s draft, C had fully performed the requested act and therefore in princple able to enforce the promise.
