Termination of offer - lapse of time, Death of a party, Revocation of an offer (Offer and acceptance)-FS Flashcards
(10 cards)
When does an offer lapse due to the passage of time?
An offer lapses if it is not accepted within the time prescribed by the offeror, or—if no time is stated—within a reasonable period, as judged by the surrounding circumstances.
How is the “reasonable time” for acceptance determined when no deadline is specified?
“Reasonable time” is determined objectively, based on contextual factors such as the subject matter of the contract and prevailing market or industry conditions.
What is the effect of the death of the offeror on an offer?
If the offeree knows of the offeror’s death, the offer lapses. If the offeree is unaware of the death, the offer may still be valid and capable of acceptance.
What is the effect of the death of the offeree on an offer?
The death of the offeree automatically terminates the offer, and it cannot be accepted by their estate or representatives.
When can an offer be revoked by the offeror?
An offer can be revoked at any time before acceptance, but not after. The revocation must be communicated to the offeree to be effective.
What methods of communicating revocation are legally valid?
Revocation can be communicated by any means, including in person, by post, or via a reliable third party.
Is a promise to keep an offer open for a specific time legally binding?
No, unless the offeree provides consideration (something of value) for the promise. Otherwise, the offeror is free to revoke the offer even before the expiry of the period.
How does revocation work in the context of unilateral contracts?
In unilateral contracts, the offer can generally be revoked any time before full performance of the act that constitutes acceptance, unless partial performance has begun and revocation would be inequitable.
Why might revocation of a unilateral offer be ineffective once performance has begun?
Courts may prevent revocation to avoid undue hardship to the offeree and may require the offeror to allow completion of performance, especially where part-performance is underway.
What legal principle prevents revocation of a unilateral offer once part performance has occurred?
The principle of equity and fairness protects the offeree from revocation of a unilateral offer where they have partly performed and are ready to complete the required act.
