OFFER & REVOCATION

Topic :

01 Condition of offer

02 When communication of offer is complete?

03 How revocation can be made?

04 Revocation of offer
CASES
 1) Condition of offer
Certain, clear, complete, final and detail to
avoid any doubt
Certain/
means : A offeror should specify her/his offer to
offeree. Examples, offeror must details on of-
Specific
fer includes the price, subject matter of
contract, T&C and others.
Sec 2 (a)
“ when one person signifies to another
Communicated
means : silent is not amounting to a valid of-
fer. Offer must be communicated to
others.
Lynn offered to buy a horse
from Guthing on condition
that if the horse brings luck to
him. Then only he pay an-
other 5 pound extra.
Held:
The offer was not final & in-
complete.
Therefore, NOT VALID.
2) When communication of
offer is complete?

Sec 4(1) CA1950

the communication of proposal is
complete when it comes to the
knowledge of the person to whom it is made

Thus, if the offeree knows about the

offer, there is a contract.
 https://www.youtube.com/
watch?v=w9hlwRNkx00

Australian government offered a reward for information leading arrest of persons responsible for the
murder of two policeman. X and Clarke were arrested and charged with murder. During investigation,
Clarke gave information which lead to the arrest of Y (the real culprit).
X and Y later convicted for murder and Clarke was discharged. Clarke then Claimed for the reward.
Clarke’s claim was rejected by the court because he has no knowledge with regard to the offer by
Australian government. He gave the info not because he knows about the reward but to release himself.
Taylor(a ship captain) withdrew his posi-
tion as a ship captain in the course of a
voyage. However, later he helped to sail
the ship and claimed payment.

Held: There was no contract. This is be-

cause Taylor did not communicate his of-
fer to continue his service. The offer was
not communicated to the
defendant(Laird). The claim was failed.
REVOCATION OF
OFFER
 REVOCATION OF OFFER

A proposal, once communicated, remains open

until it is withdrawn, cancelled, retracted or lapsed.
Revocation of offer is depend on how the offer was
made.
S.5(1) of the CA :
“ a proposal/offer may be revoked at
any time before the communica-
1) Offer made by tion of its acceptance is complete
oral/direct/face to as against the proposer/of-
face offer feror, but not afterwards”
 How Revocation Can Be Made?– Sec.6

Sec 6(a)
Communication of notice of
revocation by the proposer/
offeror to the offeree
Sec 6(b)
Lapse of time prescribed in the
Sec 6(d) proposal or if no time prescribed,
by of lapse of a reasonable time
Death or mental disorder of
the offeror

Sec 6(c)
Failure of the offeree fulfill a
condition of an acceptance
 Byrne v. Van Tienhoven (1880)
5 CPD 344 (POSTAL RULE)
The D offered to sell 1000 boxes of tinplate to the P on:

1/10= D posted a LO from Cardiff to the P in New York

8/10= D posted a LOR to the P revoking the offer
11/10= P received the D's offer letter and at once posted his
acceptance via telegram.
15/10= P sent again the LOA to reconfirm his acceptance that
made on 11/10
# 20/10= P received the D's letter of revocation which is posted
on 8/10.

The court held: There was a contract. Revocation of offer posted

on 8/10 was not effective till 20/10 .At the meantime,
P had already accepted the offer on 11/10 (telegram).

https://www.youtube.com/watch?v=_DyE_9VP_V8
 Ramsgate Victoria Hotel Co v
Montefiore (1866)LR Ex Ch 109


The D applied for shares in the P company on 8 June, and had paid a deposit.

He received no further news until 23 November when he was informed that the
shares had been allotted to him and that he should pay the balance due on them.

D refused to pay the balance.

The court held:
that there was no valid binding contract because acceptance was not made within
reasonable time.