Contract Law: Revocation of Offers
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Questions and Answers

When does the communication of acceptance become complete against the acceptor?

  • When it comes to the knowledge of the proposer (correct)
  • When it is posted by the acceptor
  • When it reaches the acceptance's address
  • When it is acknowledged by both parties
  • At what point may revocation of acceptance be valid according to s.5(2)?

  • As soon as the revocation is posted
  • After the acceptance is communicated to the proposer
  • Before the acceptor has acknowledged the offer
  • Anytime before the acceptance is received by the proposer (correct)
  • What is the status of the revocation when it is posted by the proposer?

  • It is valid immediately upon posting
  • It is valid when it reaches the acceptor
  • It is valid when it is out of the power of the proposer (correct)
  • It is valid once the acceptor acknowledges it
  • In the context of the case, when was the contract binding on D?

    <p>When the acceptance was telegraphed on October 11</p> Signup and view all the answers

    According to the case analysis, when can an acceptor no longer rescind their posted revocation of acceptance?

    <p>When the acceptor posts the revocation</p> Signup and view all the answers

    When is acceptance considered valid according to the principles discussed?

    <p>When the acceptance comes to the knowledge of the proposer.</p> Signup and view all the answers

    At what point is a revocation of acceptance effective against the acceptor?

    <p>When the revocation is put into a course of transmission.</p> Signup and view all the answers

    If the revocation of acceptance is posted after the acceptance, what is true regarding the effectiveness of both communications?

    <p>The acceptance is valid, and the revocation is also valid when received.</p> Signup and view all the answers

    According to the timing of communications, when was the revocation of acceptance effectively received by D?

    <p>On October 22 when it was received.</p> Signup and view all the answers

    Which interpretation aligns with the rules established under the Contracts Act regarding acceptance and revocation?

    <p>Acceptance is valid once it is posted, while revocation is valid only upon receipt.</p> Signup and view all the answers

    Under what condition can a proposal be revoked?

    <p>Any time before acceptance is communicated</p> Signup and view all the answers

    What happens to a revocation once it is put into transmission to the acceptor?

    <p>Communication of revocation is complete against the acceptor</p> Signup and view all the answers

    What is the significance of instantaneous communication in relation to acceptance?

    <p>Acceptance is complete when heard by the proposer</p> Signup and view all the answers

    According to section 4(2)(a) of the Contracts Act, when is the communication of acceptance complete against the proposer?

    <p>When it is put in a course of transmission to the proposer</p> Signup and view all the answers

    What legal principle is applied when discussing the revocation of an offer before acceptance communication is complete?

    <p>Postal rule under section 4(2)</p> Signup and view all the answers

    What can be concluded about the Bhagwandas and Entores cases in relation to revocation?

    <p>They illustrate consequences of instantaneous communication</p> Signup and view all the answers

    What is true regarding the timing of a proposal’s revocation?

    <p>It can be made anytime before acceptance communication is complete</p> Signup and view all the answers

    Which statement best summarizes the rules regarding acceptance and its communication?

    <p>Instantaneous acceptance is based on verbal confirmation</p> Signup and view all the answers

    When is the revocation of acceptance considered valid against the person who made it?

    <p>When it is put into a course of transmission</p> Signup and view all the answers

    What is the key factor that determines the timing of acceptance being considered valid?

    <p>When it comes to the knowledge of the proposer</p> Signup and view all the answers

    What does the communication of acceptance being complete imply in relation to the acceptor?

    <p>It is complete when it reaches the acceptor’s knowledge</p> Signup and view all the answers

    In the scenario provided, when did D effectively receive the revocation of acceptance?

    <p>On October 22</p> Signup and view all the answers

    Which of the following best describes the status of a revocation of acceptance once it is posted?

    <p>It is effective against the acceptor when posted</p> Signup and view all the answers

    What is necessary for a revocation of an offer to be considered valid according to section 4(3)(a)?

    <p>It should be put into course of transmission to the acceptor.</p> Signup and view all the answers

    Under which condition may an acceptance be cancelled before the offeror is aware?

    <p>If the acceptance is posted but not yet received.</p> Signup and view all the answers

    What happens to the revocation of an offer once it is posted according to section 4(3)(a)?

    <p>It cannot be retracted afterward by the offeror.</p> Signup and view all the answers

    What does section s.5(1) state regarding the revocation of a proposal?

    <p>It may be revoked at any time before communication of acceptance is complete.</p> Signup and view all the answers

    In the context of revocations, what does the term 'course of transmission' refer to?

    <p>The moment when the offer is sent to the acceptor.</p> Signup and view all the answers

    At what point is the revocation of an offer considered valid according to the provided details?

    <p>When the revocation comes to the knowledge of the acceptor</p> Signup and view all the answers

    According to section 4(3)(b), when is the communication of revocation complete against the person to whom it is made?

    <p>When the revocation is received by the acceptor</p> Signup and view all the answers

    What does section 5(2) state about the acceptance of an offer?

    <p>It is considered effective upon delivery to the proposer</p> Signup and view all the answers

    Which principle is applied when understanding the communication of acceptance and revocation?

    <p>The acceptance must precede the revocation in time to be valid</p> Signup and view all the answers

    When can an acceptor no longer rescind their posted revocation of acceptance?

    <p>Once the proposer receives the revocation</p> Signup and view all the answers

    At what point can a proposer effectively revoke an offer?

    <p>Before the communication of acceptance is set into motion</p> Signup and view all the answers

    How is the communication of revocation considered complete against the acceptor?

    <p>When it reaches the acceptor’s knowledge</p> Signup and view all the answers

    In the context of instantaneous communication, when is acceptance deemed complete?

    <p>When the proposer hears the acceptance</p> Signup and view all the answers

    What does section 4(2)(a) of the Contracts Act state regarding acceptance?

    <p>Acceptance is complete when it’s out of the power of the acceptor</p> Signup and view all the answers

    Which statement accurately describes the relationship between the proposer and the revocation of an offer?

    <p>Revocation is valid only if communicated before acceptance is completed</p> Signup and view all the answers

    Which scenario best illustrates a misunderstanding of the postal rule concerning revocation?

    <p>The proposer calls to revoke after the acceptor has mailed acceptance</p> Signup and view all the answers

    What is a key concept regarding the effectiveness of proposals and their revocations?

    <p>The effectiveness of revocation can apply before acceptance is known</p> Signup and view all the answers

    What challenge arises from the interpretation of the Bhagwandas and Entores cases?

    <p>Confusion over the timing of revocation validity</p> Signup and view all the answers

    A proposal can be revoked at any time after the communication of acceptance is complete.

    <p>False</p> Signup and view all the answers

    The communication of acceptance is considered complete once it is put into a course of transmission to the acceptor.

    <p>False</p> Signup and view all the answers

    Revocation of an offer becomes effective against the offeror when it is delivered to the offeree.

    <p>False</p> Signup and view all the answers

    An acceptance can be canceled as long as the offeror has knowledge of it.

    <p>False</p> Signup and view all the answers

    An offer can be revoked when the offeror becomes mentally incapacitated.

    <p>True</p> Signup and view all the answers

    The revocation of an offer is considered valid when it is received by the acceptor.

    <p>False</p> Signup and view all the answers

    An acceptance can be revoked after it has been communicated to the proposer.

    <p>False</p> Signup and view all the answers

    The communication of acceptance is complete against the acceptor when the proposer becomes aware of it.

    <p>True</p> Signup and view all the answers

    Once the acceptor posts a revocation of acceptance, they can rescind it anytime before the revocation is received.

    <p>False</p> Signup and view all the answers

    The communication of revocation becomes effective against the person to whom it is made only when it is posted.

    <p>False</p> Signup and view all the answers

    A proposal may be revoked after the communication of acceptance is complete against the proposer.

    <p>False</p> Signup and view all the answers

    The communication of revocation is considered complete when it is received by the acceptor.

    <p>False</p> Signup and view all the answers

    Under instantaneous communication, acceptance is complete when it is transmitted to the proposer.

    <p>False</p> Signup and view all the answers

    According to section 4(2)(a), the acceptance is complete once it is put in a course of transmission to the proposer.

    <p>True</p> Signup and view all the answers

    The case of Entores illustrates the principle that acceptance can be effectively communicated at any time prior to the revocation of the offer.

    <p>False</p> Signup and view all the answers

    Instantaneous communication does not differentiate the time acceptance is complete against the proposer and the acceptor.

    <p>True</p> Signup and view all the answers

    The revocation of an offer is ineffective if it is communicated after the acceptor has sent their acceptance.

    <p>True</p> Signup and view all the answers

    A proposal that is revoked before acceptance can still be valid if communicated after acceptance is sent but before it is received.

    <p>False</p> Signup and view all the answers

    The acceptance is considered valid on October 11.

    <p>True</p> Signup and view all the answers

    The revocation of acceptance is effective as of October 12.

    <p>True</p> Signup and view all the answers

    D received the acceptance before the revocation on October 22.

    <p>False</p> Signup and view all the answers

    The communication of acceptance is complete against the acceptor when the acceptance is posted.

    <p>True</p> Signup and view all the answers

    A revocation cannot be valid if it is posted after acceptance is communicated to the proposer.

    <p>False</p> Signup and view all the answers

    Study Notes

    Revocation

    • Revocation is important for understanding when offers and acceptances can be taken back.
    • An offer can be revoked before acceptance.
    • Acceptance revocation is more complex. An acceptance can only be revoked if the offeror is unaware that an acceptance has happened.

    Revocation of Offer

    • Review section 6 of the relevant law to understand how to revoke an offer.
    • Notice: methods of providing notification of revocation
    • Time: Time constraints associated with revocation.
    • Non-compliance with conditions: Conditions that must be met
    • Death/mental illness of offeror: Circumstances influencing revocation.
    • Offers can be revoked with section 5(1) when used in conjunction with section 4(2)(a).
    • Revocation is valid when it meets the conditions of section 4(3)(a) and section 4(3)(b).
    • Understand the postal rule regarding revocation.

    Important Sections

    • Section 5(1): An offer can be revoked at any point before acceptance is complete, for the offeror.

    • Section 4(2)(a): Communication of acceptance is complete when it's sent and out of the acceptor's control.

    • Important: An offer can be revoked at any time before the post/communication of acceptance is final.

    • Section 4(3)(a) and (b): The communication of the revocation of an offer is complete:

      • Against the person making it: When the revocation is sent/communicated.
      • Against the receiver: When the revocation becomes known to them.

    Instantaneous Communication

    • Section 5(1) still applies, but section 4(2) does not apply in situations with instantaneous communication.
    • Instantaneous communication means that acceptance is complete when the offeror hears/receives it.
    • There is no difference between acceptance being complete from the point of view of the offeror, and the acceptor.
    • Note: Using section 4(2) in instantaneous communication scenarios is not problematic.

    Case Study: Byrne & Co v Leon Van Tienhoven

    • Oct 1: D sends offer

    • Takes 10 - 11 days to arrive

    • Oct 8: D revokes offer

    • Oct 11: P accepts offer (telegraphs)

    • Oct 20: P receives letter of revocation.

    • Crucial for understanding when something is considered legally valid.

    Revocation of Acceptance

    • Revocation of acceptance follows the same principles as revocation of an offer.
    • Section 5(2) An acceptance can be revoked at any time prior to the acceptance being communicated to the proposer.
    • Section 4(2)(b): Communication of an acceptance is complete against the acceptor when it is communicated to the proposer.
    • Revocation of acceptance is valid under section 4(3)(a) and section 4(3)(b) and the same rules as for revocation of an offer.
    • The acceptor can revoke their acceptance prior to the letter of acceptance being received by the proposer.

    Illustrations

    • Example scenarios illustrating how revocation works regarding offers, acceptances, and postal rules.
    • Explains acceptance is complete when the letter of acceptance is sent, for the proposer.
    • Clarifies examples and scenarios for instantaneous communication and postal rules, relating to validity and timelines in revocation.

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    Related Documents

    Revocation PDF

    Description

    This quiz explores the essential concepts of revocation in contract law, focusing on offers and acceptances. You'll learn about the legal framework, including various sections that govern the revocation process and the circumstances that can influence it. Test your understanding of how to effectively revoke an offer and the postal rule associated with it.

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