REVOCATION
INTRODUCTION
When can an offer / acceptance be revoked is as
important as how one revokes
Anyone knows that an offer can only be taken
back before acceptance
For ‘acceptance’, however, it is more complicated,
i.e.
an acceptance can only be ‘cancelled’ as long as the
offeror is unaware of it
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REVOCATION OF OFFER
3
INTRODUCTION
Recall: s.6 on how offer is revoked
Notice
Time
Non-compliance with condition
Death/mental illness of offeror
When an offer can be revoked:
S.5(1)
Read together with s.4(2)(a)
When the revocation is valid:
S.4(3)(a) and s.4(3)(b)
Note: remember postal rule 4
s.5(1)
A proposal may be revoked at any time before the
communication of its acceptance is complete as
against the proposer, but not afterwards
s.4(2)(a)
The communication of acceptance is complete as
against the proposer, when it is put in a course of
transmission to him, so as to be out of the power
of the acceptor
A proposal may be revoked at any time before the 5
letter of acceptance is posted.
s.4(3)
The communication of revocation is complete
(a) as against the person who makes it, when it is
put into a course of transmission to the person
to whom it is made, so as to be out of the power
of the person who makes it, and
(b) as against the person to whom it is made, when
it comes to his knowledge.
Once offeror posts revocation of offer, he cannot
rescind it. 6
So what about instantaneous communication?
S.5(1) still applies, but not s.4(2)
S.4(2) deals with postal rule
S.5(1) ... A proposal may be revoked at any time
before the communication of its acceptance is
complete as against the proposer, but not
afterwards
Instantaneous: no distinction between when it is
complete against proposer or acceptor
Acceptance is complete when it is heard by the
proposer
Bhagwandas case, Entores case
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BYRNE & CO V LEON VAN TIENHOVEN [1874-1880]
Oct 1 : D posted a letter of offer
Takes 10-11 days to arrive
Oct 8: D posted letter of revocation
Oct 11: P telegraphed acceptance
Oct 20: P receives letter of revocation
Consider:
When was the revocation of offer valid?
When was the contract binding on D?
Can P revoke his acceptance? 8
IGNATIUS V BELL
Acceptance must be made on or before 20 August
“By notice in writing served to me”
at Lapan Hutan Estate, Kuala Selangor, or my
residence
P posted a registered letter o D on 16 August
D only received the letter on 25 August
Held
Valid contract
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SUMMARY
When an offer is made and accepted by letters
sent by post, the contract is complete the
moment the letter is posted
Even though it never reaches its destination
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REVOCATION OF ACCEPTANCE
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INTRODUCTION
How, is as per s.3 … “act or omission”
When, is as per s.5(2)
In line with s.4(2)(b)
When the revocation is valid
S.4(3)(a) and s.4(3)(b)
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s.5(2)
An acceptance may be revoked at any time before
the communication of its acceptance is complete
as against the acceptor, but not afterwards
s.4(2)(b)
The communication of acceptance is complete as
against the acceptor, when it comes to the
knowledge of the proposer.
May revoke acceptance anytime before letter of acceptance 13
is received
s.4(3)
The communication of revocation is complete
(a) as against the person who makes it, when it is
put into a course of transmission to the person
to whom it is made, so as to be out of the power
of the person who makes it, and
(b) as against the person to whom it is made, when
it comes to his knowledge.
Once acceptor posts revocation of acceptance, he
cannot rescind it. 14
END
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