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Contract: Essential Requirements and Formation

Communication, revocation and lapse of an offer

  • 3 things to know
  • Components 2 and 3

Overview

Reasonable time for the purposes of lapse, effect of the death of the offeror and effect of the death of the offeree.

What you need to know

Answer each one before you reveal it.

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Numbers

Why must an offer be communicated to the offeree?

Key term

To whom may an offer be made?

Numbers

When may an offer be revoked?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Why must an offer be communicated to the offeree?

    Model answer

    An offeree cannot accept an offer without knowing of its existence. Taylor v Laird (1856) shows that an uncommunicated offer creates no contract.

  2. 2

    To whom may an offer be made?

    Model answer

    An offer may be made to one person, to a group, or to the world at large. Only a person to whom the offer is addressed can accept it.

  3. 3

    When may an offer be revoked?

    Model answer

    An offer may be revoked at any time before acceptance. Routledge v Grant (1828) held that a promise to keep an offer open is not binding without consideration.

  4. 4

    Must revocation of an offer be communicated?

    Model answer

    Byrne v Van Tienhoven (1880) held that revocation takes effect only when it actually reaches the offeree. A posted revocation is therefore ineffective until it arrives.

  5. 5

    Can revocation be communicated by someone other than the offeror?

    Model answer

    Dickinson v Dodds (1876) held that notice of revocation from a reliable third party is effective. The offeree had learned from another source that the property was being sold elsewhere.

  6. 6

    How is a unilateral offer revoked?

    Model answer

    A unilateral offer should be revoked by taking steps of similar prominence to the original offer. Errington v Errington and Woods [1952] held that revocation is not possible once performance has begun.

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