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 revoked before the
acceptance reaches the offeror

2
 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)
 Ie at any time before the letter of acceptance is posted
 When the revocation is valid:
 S.4(3)(a): revocation binds the person revoking when he
puts the letter in the letter box
 S.4(3)(b): revocation binds the person to whom the
revocation is directed, when the letter comes to his
knowledge
4
 Note: remember 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

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
 REVOCATION OF OFFER
s.5(1) & s.4(2)(a) s.4(3)

A proposal may be The communication of

revocation is complete
revoked at any time
(a)
before the
communication of its
acceptance is complete
as against the proposer
ie when it is put in a (b)
course of transmission
to him …
as against the person
who makes it, when
it is put into a course
of transmission to
the person to whom
it is made … and
as against the person
to whom it is made,
when it comes to his 7
knowledge
 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

8
 BYRNE & CO V LEON VAN TIENHOVEN [1874-1880]

 Oct 1 : D posted a letter of offer

 Takes 10-11 days to arrive (Therefore letter of
offer will reach around Oct 12)
 Oct 8: D posted letter of revocation

 Oct 11: P telegraphed acceptance

 Oct 20: P receives letter of revocation of offer

Consider:
When was the revocation of offer valid?
When was the contract binding on D?
9
 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 to D on 16 August
 D only received the letter on 25 August

Held
 Valid contract

10
SUMMARY
 When an offer is made and accepted by letter
sent by post, the contract is complete the
moment the letter is posted
 Even though it never reaches its destination

11
 REVOCATION OF ACCEPTANCE

12
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)

13
 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 14

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. 15
 REVOCATION OF ACCEPTANCE
s.5(2) & s.4(2)(b) s.4(3)

A acceptance may be The communication of

revocation is complete
revoked at any time
(a)
before the
communication of its
acceptance is complete
as against the acceptor
ie when it comes to the (b)
knowledge of the
proposer
as against the person
who makes it, when
it is put into a course
of transmission to
the person to whom
it is made … and
as against the person
to whom it is made,
when it comes to his 16
knowledge
 END
17