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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)
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)
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BYRNE & CO V LEON VAN TIENHOVEN [1874-1880]
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)
s.4(2)(b)