Communication of an Offer/Revocation of an Offer Flashcards
What is the rule regarding communication of an offer?
An offer must be communicated to the offeree in order for it to be capable of acceptance.
Which case demonstrates that where no communication of the offer is made, then the offer cannot be capable of acceptance?
Taylor v Laird (1856)
Taylor v Laird (1856)
The Ship’s captain resigned in a foreign port.
He helped crew the ship home.
The ship owners were entitled to refuse to pay the captain for helping the ship home because the captain had not communicated his offer to them.
How can an offer be brought to an end?
- Acceptance
- Revocation
- Lapse of Time
- Death
- Failure of a condition precedent
- Rejection - including counter offers
When can an offer be revoked?
Generally, an offer can be revoked/withdrawn at anytime before acceptance.
If you make a second offer before the first offer is accepted, what happens to the first offer?
Pickfords Ltd v Celestica Ltd (2003)
Making a second offer impliedly revokes the first offer, although this is not guaranteed.
Pickfords Ltd v Celestica Ltd (2003)
It as held that the second offer made had revoked the first offer.
How must a revocation of an offer be communicated?
Byrne v Van Tienhoven (1880)
To validly revoke an offer, the offeror must communicate the revocation to the other party.
This can be through express words or by conduct.
Byrne v Van Tienhoven (1880)
- D posted an offer to sell on 1 October.
- D posted a revocation of the offer on 8 October.
- On 11 October, C posted an acceptance of the offer.
- On 20 October, notice of the revocation had been received.
It was held the revocation was not valid because the offer had been accepted prior to the revocation being received.
Is a revocation effective when posted, or when it is received?
A revocation is only effective once it has been received.
How do you revoke a unilateral offer?
e.g. offer of reward for a lost dog
Shuey v United States (1875)
No English case law.
Persuasive case:
Shuey v United States (1875)
Held that one (the offeror) must take reasonable steps to communicate a revocation of the offer, and if this is done, it doesn’t matter that it has not come to the attention of everyone.
Case: Abraham Lincoln - reward for conspiracy to murder.
If a unilateral offer is revoked, what happens if a party has attempted performance?
Errington v Errington and Woods (1952)
The courts have held that where a party has attempted performance when they were unaware of the revocation, then revocation would be unjust and the right to revocation could be lost:
Errington v Errington and Woods (1952)
- Father bought house for son and daughter in law to live.
- House in father’s name, but promised to transfer house to them if they paid the mortgage.
- Father died, and later son/daughter in law separated.
- Daughter stayed in house and paid the mortgage.
Court found that so long as she continued to pay the mortgage, the father’s promise was irrevocable.
Lapse of Time
Offers may become incapable of acceptance by a lapse of time.
This could be if an express time limit was placed on the offer, or it could arise impliedly by the lapse of time, such as for perishable goods.
Ramsgate Victoria Hotel Ltd v Montefiore (1866)
D offered to buy shares from C in June.
D did not hear anything further from C.
C allotted shares to D in November.
D refused the shares.
Court held that the offer by D had not been accepted within a reasonable period of time.
Death
What happens to an offer when an offeror dies?
If the offeree has heard about the death BEFORE acceptance, then the offer cannot be accepted.
If the offeree did NOT KNOW about the death, the acceptance of the offer would be binding and the executor of the estate would have to arrange for performance.
Failure of a Condition Precedent
An offer which is expressly or impliedly made subject to some condition cannot be accepted if that condition fails.
An offer to buy goods is subject to an implied term that the goods will be in substantially the same state as they were at the time of the offer.
Financings Ltd v Stimson (1962)
- D offered to buy a car on hire purchase.
- Before offer was accepted, the car was stolen and badly damaged.
- The C tried to accept the offer.
Court held that the offer could not be accepted.
