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Chapter 2

Revocation

Revocation occurs when the offeror withdraws their offer.

 Revocation can be made at any time before acceptance.

 Revocation can be made even if the offeror has agreed to keep
the offer open.

 Revocation must be communicated to the offeree by the offeror or
by a reliable third party.

There are two exceptions to the rules above:

 If the offeree pays the offeror to keep the offer open this creates a collateral
contract and a revocation of the original offer would be a breach of that
collateral contract. The offeree could claim damages (the most usual remedy for
a breach of contract) for the loss of the opportunity to accept the original offer.

 In a unilateral contract.

A unilateral contract is one which is made to the whole world and as such it would be
virtually impossible to notify everyone who saw the offer of the revocation. In addition
acceptance of a unilateral contract always involves the performance of an act (such
as using the carbolic smoke ball) and if an offeree has begun the act but not
completed it a revocation would be unjust. Revocation is not, therefore, effective if
the offeree is in the process of accepting a unilateral offer (has begun performance).

Lapse of time

An offer ceases to exist if not accepted within a specified time limit and, if no time
limit is specified, then it will lapse after a reasonable time.

An offer will also lapse on the death of the offeree or of the offeror unless the offeree
accepts in ignorance of the death.

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