Revocation of an Offer Flashcards
a) When can an offer be revoked? Case?
b) Even if they promised to keep it open for a specified time? case?
a) At any point before it is accepted - Payne v Cave
b) Routledge v Grant (1828)
If consideration is even in exchange for keeping an offer open, can it be revoked? Case?
No - Mountford v Scott (1975)
Must revocation be communicated? case?
Yes - Byrne v Van Tienhoven (1880)
Can revocation be communicated via a 3rd party? Case?
Bilateral
Yes - Dickinson v Dodds (1876)
D offered to sell the house to Dickinson
Offer would be open until 12th June
11th: Dickinson was told through a 3rd party that D was negotiating with Allan for the sale of the property
Dickinson then tried to accept the offer
CA: the offer had been effectively revoked
Communication with a 3rd party = enough to state that the offer had been + was no longer available to the claimant
What are the 4 ways that an offer can be terminated?
bilateral
- Revocation
- Rejection via counter offer (Hyde v Wrench)
- 2nd/ subsequent offer (Pickfords v Celestica (2003))
- Lapse of time (Ramsgate Victoria Hotel v Montefiore (1866))
Ramsgate Victoria Hotel v Montefiore (1866)
Claimant offered to buy shares in the hotel company in June
But the company did not issue the shares for sale until November
Held: an offer would lapse after a ‘reasonable time’
What is reasonable would depend on the subject matter of the contract
In cases where the value of the subject matter could fluctuate/ was perishable, the offer would terminate after a short time
Can unilateral offers be revoked? cases?
No - if the offeror knows the party has started performance (Errington v Errington (1952))
Yes - BUT it must be done with the same publicity/ notoriety as the offer was made
(Shuey v United States (1875)) - persuasive
Errington v Errington (1952)
Father brought a house with a mortgage for hid son + daughter-in-law
Promised that he would transfer the legal title of the property to them if they paid off all the mortgage payments
Couple didn’t make any promise in return
Father died after some repayments had been made
Other family members claimed for possession of the house (title remained in the fathers name)
Claim failed
Unilateral contract - performance had been completed by paying the mortgage payments
Therefore, fathers offer couldn’t be revoked
What did Lord Denning say in the case of Errington v Errington (1952)?
Denning also stated that the promise would not be binding if the act was left incomplete + unperformed
As long as the couple continued to make all the mortgage payments until = fully paid off, the father’s promise to transfer the house to them would still be binding
What happens if the offeror dies before acceptance?
The offeror’s personal representatives may still be bound by an acceptance provided that:
a) the contract doesn’t involve the personal services of the deceased
b) the offeree = ignorant to the offeror’s death
Which offers are less likely to survive the death of the offeror, unilateral or bilateral?
Bilateral - the impossibility of performance on either side will nullify the offer
What happens if the offeree dies before acceptance?
The offer lapses and the oferee’s personal representatives will be unable to accept on behalf of the deceased
Reynolds v Atherton (1921)
