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Errington v Wood
Citation
1952
Court
United Kingdom
Area of law
Revocation, Termination of offer
Issue
Contents
Facts
Issue
Decision
Reasons
Ratio
Factsedit | edit source
In 1930, a father bought a house for his son and daughter-in-law (Wood) to live in, telling her that the
down-payment was a gift, but they were expected to pay the mortgage and that "the house will be
your property when the mortgage is paid". He also said that when he retired he would put the house
in their names. Wood paid mortgage instalments regularly, but when they found both the rates
(property taxes) and the mortgage too burdensome, the father agreed to pay the rates as well. The
father died leaving his estate to his wife (Errington). After the father's death, Wood split from
Errington's son. Errington sued for possession of the house.
Issueedit | edit source
1. Can a unilateral contract be revoked after the death of the offeror?
Decisionedit | edit source
Appeal dismissed.
Reasonsedit | edit source
Denning, for a unanimous court, held there was no express promise by the son and daughter-in-law
to pay the instalments, and the court cannot imply those terms. He characterizes the father's
promise as a unilateral contract; the performative act paying for the mortgage, and thus it would only
be revocable if the couple did not make the payments. Once performance has started the offeror
cannot revoke the offer. The father's implied intention was to keep house in their possession if they
paid the mortgage. The couple were on a licence, short of a tenancy but a contractual, or at least
equitable right to remain, which would grow into good equitable title as soon as the mortgage was
paid.
“It could not be revoked by him once the couple entered on performance of the act, but it would
crease to bind him if they left it incomplete and unperformed, which they have not done. If that was
the position during the father’s lifetime, so it must be after his death.”
Ratioedit | edit source
An offeror can only revoke a unilateral contract if the offeree did not live up to their side of
the contract.