d) Revocation of proposal

Section 5(1) CA 1950

An offeror may revoke an offer before it has been accepted, but the revocation must be
communicated to the offeree.

A proposal is revoked:

Section 6 (a) CA 1950- by the communication of notice of revocation by the proposer to the

other party (follow LN)

Byrne v Tienhoven (1880) (LN)

(b) CA 1950 -By lapse of the time prescribed/ by lapse of reasonable time

Ramsgate Victoria Hotel v Montefoire (1866)

The defendant offered to purchase shares in the plaintiff’s company at a certain price. Six
months later the plaintiff accepted this offer by which time the value of the shares had fallen.
The defendant had not withdrawn the offer but refused to go through with the sale. The
plaintiff brought an action for specific performance of the contract. The court held that the
offer was no longer open as due to the nature of the subject matter of the contract the offer
lapsed after a reasonable period of time. Hence, there was no contract and the plaintiff's
action for specific performance was unsuccessful.

Macon Works & Trading Sdn Bhd v. Phang Hon Chin & Anor. [1976]

‘An offer lapses after a reasonable time not because this must be implied in the offer but
because failure to accept within a reasonable time implies rejection by the offeree. As a
consequence, the court can take into account the conduct of the parties after the offer was
made in deciding whether the offeree has allowed too long a time to lapse before accepting.’
(c) CA 1950 -By failure of the acceptor to fulfil the condition of the proposal

(d) CA 1950 -By death /mental disorder of the proposer, if the fact of his death

or mental disorder comes to the knowledge of the acceptor before acceptance.