Acceptance & Termination of an offer Flashcards
R v Clarke [1927]
Must be aware of the existence of the offer in order to accept it. If not, there is no acceptance.
Williams v Carwardine [1833]
As the claimant was aware of the offer at the time of acceptance, the offer was within her mind, her motives for giving evidence did not prevent a valid acceptance.
Termination of an offer:
- Revocation
- Lapse of time
- Death
General rule of revocation
The offer can be revoked at any time before the acceptance. However a promise to keep the offer open for a fixed period of time.
Routledge v Grant
There was no contract in the absence of consideration. The indication that the offer would be kept open was a bare promise and therefore not enforceable.
Byrne v Van Tienhoven [1880]
In order to be effective, the revocation must be communicated. The postal rule will not apply to revocations - the revocation is only effective when it is received. The claimants acceptance was therefore valid.
Revocation by a third party: Dickinson v Dodds (1876)
Revocation of an offer can be communicated by a reliable third party.
Revocation in unilateral contracts
Offeror is seeking the performance of an act. Possible solution, ‘two contract theory’. i.e. offer accompanied by another implied offer not to revoke providing the offeree begins the task within a reasonable time.
Errington v Errington [1952]
Promised house to daughter and son-in-law that they paid the remaining mortgage payments.
Courts recognised a “continuing act of acceptance”
Errington v Errington: Lord Denning:
“The offer could not be revoked once the couple entered on performance of the act, but it would cease to bind if they left it incomplete and unperformed.”
Daulia v Four Millbank [1978]
Offeror has an implied obligation not to revoke once the offeree has embarked on performance of the required act.
Requirement of communication
Offeror must take reasonable steps to revoke offer.
Shuey v USA (1875)
If the offer was made in a particular way then it would be reasonable to revoke it by the same method.
Ramsgate Victoria Hotel (1866)
Application for shares in June 1864.
Shares were not allocated until November 1864.
There was no contract, the acceptance was not made within a reasonable time.
Death of the offeror
The offeree cannot accept after he has had notice of the offeror’s death.
