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Offer
LAW416
Offer Must Be
Communicated
Business Law
Revocation of Offer Question3
When Offer Can Be Prepared by:
Revoked NUR ADILAH BT KAMARUDIN 2010224934
Communication of NOR’AFIQAH BINTI SHA’ARI 2010683206
Acceptance SITI NURBAYA BT MOHAMADIAH 2010880876
Nuruljannah Bte Said 2010270274
Postal Rule
Modes of Revocation
Prepared for:
Communication of Mr. Mohd Ab Malek Bin Md Shah
Revocation
Revocation of 12/08/2010
Acceptance
When Communication
of Acceptance Effective
Question
Question
Offer
Modes of Revocation
Communication of
Revocation
Revocation of
Acceptance
When Communication
of Acceptance Effective
Question
Offer
WHEN OFFER
Offer Must Be CAN BE REVOKED
Communicated
An offer remains open until it lapses or is
Revocation of Offer withdrawn.
When Offer Can Be Section 5(1),
Revoked ‘A proposal may be revoked at any time before
Communication of any time before the communication of its
Acceptance
acceptance is complete as against the
Postal Rule proposer,but not afterwards’ .
Modes of Revocation Therefore once an acceptance has been
made,the offeror is no longer entitled to revoke
Communication of
Revocation
his offer.
Revocation of
Acceptance
When Communication
of Acceptance Effective
Question
Offer
CASES
Offer Must Be ROUTLEDGE V GRANT
Communicated Defendant offered to sell a house to the Plaintiff.
Revocation of Offer The acceptance was to be made within 6 weeks.
The question was whether the Defendant could
When Offer Can Be
Revoked revoke his offer before the weeks lapses.
Communication of It was held that the Defendant may revoke his
Acceptance
offer at any time within that 6 weeks on
Postal Rule condition that no acceptance had been made by
the Plaintiff.
Modes of Revocation
Communication of
Revocation
Revocation of
Acceptance
When Communication
of Acceptance Effective
Question COMMUNICATION
Offer OF ACCEPTANCE
Offer Must Be General rule, section 2(b):
Communicated An acceptance must be communicated to offeror.
Revocation of Offer Communicated acceptance must be something
more than mere mental assent
When Offer Can Be
Revoked
Keeping silent/accepting in heart does not amount
Communication of to an acceptance.
Acceptance
Exception :
Postal Rule
In certain circumstances, actual communication is
Modes of Revocation not required even acceptance not physically made.
Communication of When offeror not insist on acceptance to be communicated.
Revocation Offeror allows offeree to fulfill conditions of the offer.
Revocation of Reciprocal promises.
Acceptance Postal rule.
When Communication
of Acceptance Effective
Question
POSTAL RULE
Offer
Offer
CASES
Offer Must Be INGATUS V BELL
Communicated The defendant offered to sell his land to the
Revocation of Offer plaintiff on condition that if the plaintiff would
like to accept the offer, the acceptance must be
When Offer Can Be
made on or before 20th August 1912. The
Revoked
Communication of
plaintiff sent the acceptance by registered post
Acceptance on 16th August 1912 but the letter only reached
the defendant on 25th August 1912. The dispute
Postal Rule
is whether there is a contract created as there
Modes of Revocation was a delay. The court held that the acceptance
was exercised by the plaintiff on 16th August
Communication of
1912 was a valid acceptance and the defendant
Revocation
Revocation of
was bound by a contract..
Acceptance
When Communication
of Acceptance Effective
Question
Offer
MODES OF REVOCATION
Offer Must Be Revocation can be made by any of the modes
Communicated provided under section 6 (a).
Revocation of Offer
Offer
COMMUNICATION OF
Offer Must Be REVOCATION
Communicated
The communication of a revocation is dealt with
Revocation of Offer under Section 4(3) of the said Act which states:
When Offer Can Be
Revoked 4. (3) The communication of a revocation is
Communication of complete:
Acceptance
(a) as against the proposer, when it is put in a
Postal Rule course of transmission to the person to
whom it is made, so as to be out of the
Modes of Revocation power of the person who makes it and
Communication of (b) as against the person to whom it is made,
Revocation when it comes to his knowledge.
Revocation of
Acceptance
When Communication
of Acceptance Effective
Question
CASES
Offer BRYNE CO v VAN TIENHOVEN & CO
Offer Must Be Defendant offered to sell 1000 boxes of tinplates to the
Communicated plaintiff.
Offer
REVOCATION OF
Offer Must Be ACCEPTANCE
Communicated
Section 5 (2): An acceptance can be revoke at
Revocation of Offer any time before the communication of
When Offer Can Be acceptance is complete against the acceptor.
Revoked
Communication of Section 4 (2)(b): The communication of an
Acceptance acceptance is complete as against the acceptor
Postal Rule when it comes to the knowledge to the proposer.
Offer
CASES
Offer Must Be
DUNMORE V ALEXANDER
Communicated The letter of acceptance and the letter of
revoking the acceptance were received by the
Revocation of Offer
offeror simultaneously. It was held that the
When Offer Can Be acceptance had been effectively revoked by the
Revoked offeree. Therefore there was no contract.
Communication of
Acceptance
Postal Rule
Modes of Revocation
Communication of
Revocation
Revocation of
Acceptance
When Communication
of Acceptance Effective
Question
WHEN COMMUNICATION OF
Offer ACCEPTANCE AFFECTIVE
Offer Must Be Refer section 4(3)(a) & (b) stated earlier.
Communicated Illustration (d) to section 4 Contract Act 1950:
Example:
Revocation of Offer
1st January 2008 -A proposes, by telegram to sell his
When Offer Can Be hand phone at a price of rm500.
Revoked
Communication of 14 January 2008: the letter is posted.
Acceptance
Situation for A: The communication of a proposal is complete
Postal Rule when B receives the letters. B accepts A’s proposal by a letter
sent by post. The communication of the acceptance is
Modes of Revocation complete as against A. As such A cannot revoke his proposal.
Communication of
Situation for B: Upon posting the letters is not bound in
Revocation
contract until the letters is received by A. Thus B may revoke
Revocation of his acceptance at any time before the letter reached by A.
Acceptance
When Communication
of Acceptance Effective
Question
Offer
CONCLUSION
Offer Must Be The offeree has the advantage in 2 situations:
Communicated
1. He could post the letter of acceptance and
Revocation of Offer
thus stop the offeror from withdrawing or
When Offer Can Be revoking his offer.
Revoked
Communication of
Acceptance
2. In the meantime, he could revoke the
acceptance by using a speedier means
Postal Rule (telephone) of communication before the
letter of acceptance reaches the offeror.
Modes of Revocation
Communication of
Revocation
Revocation of
Acceptance
THE END
When Communication
of Acceptance Effective