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Revocation - Malaysian law

Revocation refers to the withdrawal of an offer. An offer may be withdrawn any time
before acceptance. To be valid, a revocation of an offer must be communicated to
the offeree.
Section 5(1) of the contract Act 1950 states that a proposal can be withdrawn any
time before the communication of its acceptance is complete as against the
proposer.
Section 5(2) states that an acceptance may be revoked at any time before the
communication of the acceptance is complete as against the acceptor.
The revocation of an offer must be communicated in order to be effective. This is
provided for under section 6(a) of the contracts Act 1950.
Furthermore according to another section in the contracts act 1950, which is section
5 where it states about revocation of proposal and acceptance. According to this
sections subsection 1, a proposal may be revoked at any time before the
communication of its acceptance is complete which means before the acceptor
puts in the letter in its course. Meanwhile under sub section 2 of the same section it
states that an acceptance may be revoked at any time before the communication
of the acceptance is complete as against the acceptor, but not afterwards. In short
it says that a proposal or an acceptance can only be revoked before it is
communicated to the person and other vise cannot be revoked.

Case:
In the case Dickinson v Dodds (1876) 2 Ch D 463. It was held that the offer had
been effectively revoked. Therefore no contract existed between the parties. The
offeror is free to withdraw the offer at any time before acceptance takes place
unless a deposit has been paid.

In this case:
Peter received revocation letter on 7th April, 2007
Ali received offer letter from Peter on 8th April, 2007
The revocation letter was made before the communication of acceptance was
complete. Hence, the offer was absolutely revoked. Ali had right to sell his clock to
Lim.

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