extra notes on revocation

2.5.3 Revocation of Offer

  • An offer can be terminated in two ways:

    • Express Revocation: The offer is clearly revoked by the offeror.

    • Implied Revocation: Can occur through actions like making a counter-offer or a second differing offer.

      • Case Reference: Hyde v Wrench (1840) shows that a counter-offer implies rejection of the initial offer.

  • Revocation may also be implied when the offeror makes a second offer without revoking the first. - Case Reference: Pickfords Ltd U Celestica Ltd [2003] establishes that a second offer can imply revocation if there is clear intention to withdraw the first. - If a second quotation is requested as an option (not as a counter-offer), both offers remain open for choice.

2.5.3.1 Express Revocation of an Offer

  • In a bilateral contract, the offeror can withdraw the offer anytime before acceptance. - Case Reference: Offord U Davies (1862) supports the notion that revocation after acceptance is ineffective.

2.5.3.2 'Firm Offers'

  • An offer may be stated as 'open' for a specific period but this does not prevent its revocation after that period unless supported by consideration.

  • Such a promise to keep an offer open for a period is a pre-contractual promise and is unenforceable without consideration. - Case Reference: Routledge v Grant (1828) demonstrates the unenforceability of such promises.

  • The court held that the defendant's revocation during the 'open' period was valid due to lack of consideration.

2.5.3.3 Critique of the Firm Offer Rule in English Law

  • The distinction around firm offers is not mirrored in most legal systems, including many US states.

  • Comparative References: US UCC § 2-205 prevents revocation during a fixed acceptance time period, similar to rules in PICC and PECL.

  • Reform discussions include the possibility of allowing small reciprocal benefits to support firm offers as in Williams v Roffey Bros. & Nicholls (Contractors) Ltd.

  • Reforms could potentially align English law with those principles found in other jurisdictions regarding firm offers.

2.5.3.4 Communication of a Revocation

  • Revocation is ineffective until communicated to the offeree; the offer remains open until such communication occurs.

2.5.3.4.1 Communication Timing and Postal Rule

  • Postal rules apply to acceptances but not to revocations, affecting timing significance in communications.

  • Case Reference: Byrne and Co. v Van Tienhoven and Co. (1880) illustrates that acceptance may occur even after a revocation letter is sent but not received.

  • Case Reference: Henthorn v Fraser (1892) shows that an acceptance posted before a revocation is valid upon dispatch.

2.5.3.4.2 Revocation of Unilateral Offers

  • Special rules exist for revocations of unilateral offers made to the public, where personal communication of revocation is impractical. - Case Reference: Shuey v United States (1875) addresses this type of revocation, focusing on unidentified offerees.

2.5.3.4.3 Revocation via Third Parties

  • Revocation need not be directly from the offeror if the offeree reasonably believes the information. - Case Reference: Dickinson V Dodds (1876) shows that offerees may learn about revocation through other reliable sources, even if the communication isn’t authorized by the offeror.

  • Offerees should verify revocation claims to mitigate risks of misinformation.