Offer and Acceptance in contract law notes & cases

Welcome again to the series of notes on Contract Law in Tanzania.

In this post, we shall take a closer look at the most important aspect of the formation of a Contract which is the Offer and Acceptance

These notes will cover;

  • Meaning of Offer and Acceptance
  • When an offer is made?
  • Characteristics of an Offer
  • Making an Offer under various Situations
  • Revocation of an Offer
  • Communication of Acceptance of an offer
  • Mode and Communication of an Offer or Proposal
  • etc

Let’s get started

Previous topic

The Meaning of an Offer

Section 2(1) (a) of the Law of Contract Act of Tanzania, Cap 345 R.E 2019 (LCA), refers Proposal or offer to a situation when one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence.

As discussed in the previous post on the Introduction to Contract Law, the word “Offer” is used synonymously with the word “Proposal”. So don’t panic or confuse yourself when you come across a word “offer” because in other terms is also called “Proposal”, they are used interchangeably.

In simple terms, an offer is an expression of willingness to do something or not to do something from one party to the other party.

For example;

Imagine you’re at a farmer’s market, eyeing a basket of juicy apples. The vendor notices your interest and says, “I’ll sell you a dozen apples for $5.” In this scenario, the vendor’s statement (“I’ll sell you a dozen apples for $5”) is an offer.

It’s a clear indication of their willingness to enter into a contract to sell you apples at a specified price.

By making the offer, the vendor indicates their intention to be legally bound by the terms if you accept. They’re not just casually mentioning the price; they’re inviting you to enter into a contract with them.

The Meaning of an Acceptance

Section 2(1) (b) of the LCA provides that when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted, and a proposal, when accepted, becomes a promise.

In simpler terms, when someone offers something and the other person agrees to it, that agreement is called acceptance.

Here’s an explanation using the farmer’s market scenario:

Let’s say you respond to the vendor’s offer by saying, “I’ll take them.”

This response demonstrates your acceptance of the offer. You’re agreeing to buy a dozen apples for $5, as proposed by the vendor.

When an offer is made?

A proposal or offer is made when a buyer makes a proposal to the seller, or the seller makes a proposal to the buyer, and the buyer accepts the terms of such offer or vice versa.

Let us take a look at the following example, where John is offering to sell his iPhone to Michael.

John: Hello Michael, I heard that you lost your phone yesterday, and you are looking forward to buy a new phone, Well, to just give you some heads up, I am selling my iPhone 15, in case you are interested.

Michael: I am fine John, For How much do you intend to sell your phone?

John: I am selling it for 2,500,000 Tanzanian Shillings. (To this point John has already made an offer to Michael)

Michael: Well, that is a generous offer, I would like to buy it, but truthfully speaking for now I only have 2,350,000 cash, so maybe we could compromise? (This is a Counter-Offer made by Michael)

John: 2,350,000 sounds Fine to me, so we have a deal?

Michael: Yes, We have a deal, I will come to your place later so that we can wrap it up, it was nice doing business with you.

John: Thank You, the Pleasure is mine My friend Michael, see you Later at my place.

From the above example, you have been able to see that John offered or proposed to sell his iPhone 15 to Michael, and Michael generously accepted the offer, even though he proposed a counteroffer which was also accepted by John.

A Counter-offer is an offer that is made by the promisee or offeree to compromise or bargain the original offer with a more affordable and beneficial offer on his side. It’s basically saying, “I like your offer, but how about this instead?” So, instead of just accepting or rejecting the original offer, you’re suggesting a new deal.

An act of Michael accepting the Proposal made by John changes the status of the proposal to become a promise, and the Promises made to each by Michael and John, suffices such arrangement to be called an agreement. (Refer to Section 2(1) (d) and (e) of the LCA)

Another situation that may arise here is a cross-offer.

A cross-offer occurs when two parties make identical offers to each other simultaneously, resulting in a mutual exchange of promises.

Essentially, each party proposes the same terms to the other, forming a meeting of the minds and potentially leading to the formation of a contract.

For example:

John: “I offer to sell my laptop to Michael for 2,500,000”
Michael: “At the same time, I offer to buy a laptop from John for 2,500,000.”

In this scenario, both parties are making offers that mirror each other’s terms, creating a cross-offer situation. If both parties accept each other’s offers, a contract is formed. However, if only one party accepts the offer while the other does not, there is no mutual agreement, and therefore, no contract is formed.

In the case of Tinn v. Hoffman (1873) LR 29 Ch D 271, the court dealt with the concept of cross-offers and the formation of a contract.

Facts of the Case:

  • Mr. Tinn, an English merchant, sent a letter to Mr. Hoffman, a German merchant, offering to sell iron to him.
  • Unbeknownst to Mr. Tinn, Mr. Hoffman had sent a letter on the same day to Mr. Tinn offering to buy iron from him at the same price per ton.
  • Both letters crossed each other in the mail and arrived at the respective recipients’ addresses on the same day.

Issues:

  • The main issue in the case was whether a contract had been formed between Mr. Tinn and Mr. Hoffman due to the exchange of identical offers.

Decision:

  • The court held that there was no contract between Mr. Tinn and Mr. Hoffman because the offers constituted mere cross-offers.
  • Since both parties had sent their letters at the same time, neither party had the opportunity to accept the other’s offer before sending their own.
  • As a result, there was no mutual assent or meeting of the minds necessary to form a contract.

Legal Significance:

  • Tinn v. Hoffman is significant because it established the principle that cross-offers do not result in a contract.
  • For a contract to be formed, there must be a valid offer and acceptance, indicating a meeting of the minds between the parties.
  • In cases of cross-offers, where both parties make identical offers to each other simultaneously, there is no opportunity for one party to accept the other’s offer before sending their own, leading to a lack of mutual assent and thus no contract.

Characteristics Of an Offer

  1. For a proposal to be effective, it must have been made willingly. That is the proposer must Express his willingness to be bound by the terms of a proposal
  2. The terms of the proposal must be clear and set.
  3. Another thing is final expression. One other characteristic of a proposal is that it should be final and explicitly agreed by the parties of their willingness to be bound by the terms of a proposal if the proposal is accepted.

Making an Offer Under Various Situations

The following is how an offer is made in the following situations;

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Offer in Unilateral Contract

In a unilateral contract situation, an offer is made when one party promises to do something in exchange for the performance of a specific act by another party. The offeror commits to providing something of value (usually a reward or benefit) if the offeree performs the specified action.

Here’s how an offer is made in a unilateral contract:

  1. Clear Promise or Statement of Intent: The offeror must make a clear promise or statement indicating their intention to offer a reward or benefit in exchange for a specific action.
  2. Performance-Based Condition: The offer typically includes a performance-based condition, meaning that the offeree must perform a specific act to accept the offer. Until the offeree performs the required action, there is no obligation on the part of the offeror.
  3. Communication of Offer: The offer must be communicated to the offeree in a way that allows them to understand the terms and conditions of the offer, including what action they need to perform to accept it.
  4. No Requirement for Acceptance: Unlike bilateral contracts, where acceptance is necessary to form a contract, in a unilateral contract, the performance of the specified action by the offeree constitutes acceptance of the offer.
  5. Revocability: In most cases, the offeror can revoke the offer at any time before the offeree performs the required action. Once the offeree begins performance, however, the offer becomes irrevocable because it would be unfair to allow the offeror to revoke the offer after the offeree has already started performing.

Example:

  • Offer: “I promise to pay $100 to anyone who finds and returns my lost dog.”
  • Offeree’s Acceptance: The offeree accepts the offer by finding and returning the lost dog.
  • Contract Formation: A contract is formed once the offeree performs the specified action (finding and returning the lost dog), and the offeror is obligated to fulfill their promise (paying $100).

In unilateral contracts, the focus is on the performance of the offeree rather than on mutual promises or exchanges. Once the offeree performs the required action, a contract is formed, and the offeror is bound to fulfill their promise.

One notable case that illustrates the formation of a unilateral contract is Carlill v. Carbolic Smoke Ball Company (1893).

Facts of the Case:

  • The Carbolic Smoke Ball Company advertised a product called the “Carbolic Smoke Ball” in newspapers, claiming that it could prevent users from contracting influenza.
  • The advertisement stated that the company would pay £100 to anyone who used the smoke ball as directed and still contracted influenza.

Issue:

  • Mrs. Carlill purchased a Carbolic Smoke Ball and used it according to the instructions but still contracted influenza. She sued the company for the £100 reward.

Decision:

  • The court held that there was a unilateral contract between Mrs. Carlill and the Carbolic Smoke Ball Company.
  • The advertisement constituted an offer to the world at large, including Mrs. Carlill, with clear terms and a promise to pay £100 to anyone who performed the specified action (using the smoke ball) and contracted influenza.
  • Mrs. Carlill accepted the offer by performing the required action (using the smoke ball) and fulfilling the condition of the contract (contracting influenza).
  • Since Mrs. Carlill had performed the act requested by the offeror, she was entitled to the £100 reward.

Offer In Auction Sell

In an auction sale, the process of making an offer differs slightly from the typical one-on-one negotiation scenario.

Here’s how an offer is made in an auction:

  1. Auctioneer’s Announcement: The auctioneer, who acts as the agent of the seller, begins by announcing the item or items up for sale. This announcement serves as an invitation for potential buyers to make offers.
  2. Bid by Potential Buyer: When a potential buyer wishes to make an offer on an item, they indicate their bid by raising their paddle, nodding, or making some other gesture as per the auction rules.
  3. Offer to Purchase: By indicating their bid, the potential buyer is essentially making an offer to purchase the item at the announced price (or the current highest bid).
  4. Competing Bids: Other potential buyers may also make offers by bidding against the initial bidder. Each bid represents a new offer to purchase the item at a higher price.
  5. Acceptance by Auctioneer: The auctioneer accepts the highest bid by declaring “Sold!” or some other indication, signifying that the highest bidder’s offer has been accepted by the seller.
  6. Binding Contract: When the auctioneer accepts the highest bid, a binding contract is formed between the highest bidder (buyer) and the seller. The highest bidder is obligated to purchase the item at the price of their bid, and the seller is obligated to sell the item to the highest bidder.

It’s important to note that in auction sales, the auctioneer has the discretion to accept or reject bids and to withdraw items from sale if bids do not meet the seller’s reserve price or other conditions. Additionally, auction rules and terms may vary, so participants should familiarize themselves with the specific auction procedures before participating.

Barry v. Davies (2000) EWCA Civ 235: In this case, the Court of Appeal of England and Wales considered the legal principles governing auction sales and the formation of contracts. The court emphasized that in an auction sale, the auctioneer acts as the agent of the seller and invites offers from potential buyers. Each bid made by a potential buyer is considered an offer, and the acceptance of the highest bid by the auctioneer forms a binding contract between the highest bidder and the seller.

In Barry v. Davies, the court clarified that the acceptance of a bid occurs when the auctioneer brings down the hammer or otherwise indicates acceptance, and at that moment, a binding contract is formed between the highest bidder and the seller. The court also discussed the importance of auction rules and terms in governing the auction process and ensuring fairness and transparency for all participants.

Offer In Tenders

A person may advertise that he will sell certain goods by tender or he may invite tenders to execute works, the advertisements or the invitation does not normally amount to a proposal it is a merely invitation to the general public to make proposal.

In tendering processes, offers are made through a structured and formalized procedure where organizations or individuals invite bids or proposals for the provision of goods, services, or works.

Offer vs Invitation to treat

An invitation to treat is an invitation for others to make offers or enter into negotiations. It is not a definite proposal but rather an invitation to make an offer.

Key characteristics of an invitation to treat include:

  1. Lack of Intention to be Bound: The party issuing the invitation does not intend to be bound by any resulting offers until they are accepted.
  2. Indefiniteness: The terms are not definite or specific enough to constitute a valid offer.
  3. Invitation for Offers: It invites others to make offers or begin negotiations.

Examples of Invitation to Treat:

  • A store displaying goods with price tags is inviting customers to make offers to purchase those goods. The price tag is not an offer but an invitation for customers to make offers to buy the item at that price.
  • Advertisements, catalogs, and displays in shops are generally considered invitations to treat. For example, when a store advertises “50% off all winter coats,” it is inviting customers to come to the store and make offers to purchase coats at a discounted price.

Understanding the distinction between an offer and an invitation to treat is essential for determining when a legally binding contract is formed in commercial transactions.

The following cases will help you understand more;

  1. Fisher v. Bell (1961):
    • In this case, a shopkeeper displayed a flick knife in his shop window with a price tag attached. The Offensive Weapons Act 1959 made it an offense to offer for sale certain weapons, including flick knives. The shopkeeper was charged with offering the knife for sale.
    • The Court of Appeal held that the display of goods in a shop window with a price tag attached is not an offer but merely an invitation to treat. The offense was not committed until a customer took the knife to the cash register to pay for it, at which point they made an offer to buy it, and the shopkeeper could then accept or reject that offer.
  2. Pharmaceutical Society of Great Britain v. Boots Cash Chemists (Southern) Ltd (1953):
    • In this case, Boots operated a self-service shop where customers could select medicines from the shelves and take them to the cashier for payment.
    • The Pharmaceutical Society argued that the display of medicines on the shelves constituted an offer to sell, and since some of the medicines required a pharmacist’s supervision, selling them without supervision violated pharmacy laws.
    • The House of Lords held that the display of goods on the shelves was an invitation to treat, not an offer. The customer made an offer to buy the goods when they took them to the cashier, and Boots could accept or reject that offer. Therefore, Boots was not in violation of the pharmacy laws.
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Revocation of an Offer

Revocation of an offer refers to the act of withdrawing or canceling an offer before it has been accepted by the offeree

An offer can be revoked at any time before acceptance and not afterward, and once an offer is accepted its effect cannot be reversed, it is like pouring water on a muddy surface or lighting fire to a dry bush (Read Section 5 (1) of the LCA).

Here’s how the revocation of an offer typically works:

  1. Communication: The offeror communicates their intention to revoke the offer to the offeree. This communication can be explicit, such as a written or verbal statement, or implied through the offeror’s actions.
  2. Effectiveness: Revocation of an offer is effective when it is communicated to the offeree before they have accepted the offer. Once the offeree accepts the offer, the contract is formed, and the offeror cannot revoke the offer.

Modes of revocation of offer

The following is how an offer may be revoked;

By Lapse of Time of an offer/proposal

Revocation of an offer by lapse of time occurs when an offer automatically expires or terminates due to the passage of a specified time period or the occurrence of a certain event.

Under the LCA a proposal may be terminated by lapse of time prescribed in such proposal for its acceptance as provided in section 6 (b) of the LCA.

The offeror may specify a deadline by which the offeree must accept the offer. If the offeree fails to accept the offer within this time frame, the offer lapses or expires.

In the absence of a specified deadline, the offer remains open for acceptance for a reasonable period of time. What constitutes a reasonable time depends on the nature of the offer, the subject matter, and the circumstances surrounding the offer.

The lapse of an offer does not require explicit communication to the offeree. Instead, it occurs automatically when the specified time period expires or the specified event does not occur. The offeree is deemed to be aware of the lapse of the offer.

If the offeree attempts to accept the offer after it has lapsed due to the passage of time, their acceptance is not valid because there is no longer a valid offer to accept. Any purported acceptance is considered a new offer requiring acceptance by the original offeror.

Here are a couple of case laws related to the revocation of offers by lapse of time:

  1. Ramsgate Victoria Hotel Co v. Montefiore (1866):
    • In this case, Montefiore offered to purchase shares in the Ramsgate Victoria Hotel Company. However, due to delays in issuing the shares, Montefiore did not receive them until several months later.
    • By the time Montefiore received the shares, he had lost interest in the investment and refused to accept them. The Ramsgate Victoria Hotel Company argued that Montefiore’s offer had lapsed due to the passage of time.
    • The court held that Montefiore’s offer had indeed lapsed due to the unreasonable delay in issuing the shares. The lapse of time had made it impractical for Montefiore to accept the offer, and therefore, there was no valid contract between the parties.
  2. Entores Ltd v. Miles Far East Corporation (1955):
    • In this case, a contract for the sale of goods was formed through telex communication between parties in England and the Netherlands. The acceptance was sent by telex from the Netherlands to England.
    • However, the acceptance was not received due to a fault in the telex machine in England. The English party then sent a confirmation of the offer, which was received by the Dutch party.
    • The English party argued that their offer had lapsed due to the passage of time when they did not receive acceptance within a reasonable time. The Dutch party argued that acceptance had been communicated when they sent the telex.
    • The court held that the contract was formed when the acceptance was communicated, and it was effective when it was sent from the Netherlands. Since the acceptance was communicated within a reasonable time, the offer had not lapsed by the time it was accepted.

By Communication of Notice of Revocation of an Offer

Revocation of an offer by communication refers to the act of withdrawing or canceling an offer by directly communicating the revocation to the offeree (Refer Section 6(a) of the LCA)

The offeror directly informs the offeree of the revocation of the offer. This communication can take various forms, including:

  • Written Communication: The offeror may send a letter, email, fax, or text message to the offeree explicitly stating the revocation of the offer.
  • Verbal Communication: The offeror may verbally inform the offeree of the revocation in person or over the phone.

Revocation of an offer by communication is effective when the offeree receives the communication before they have accepted the offer. Once the offeree accepts the offer, the contract is formed, and the offeror cannot revoke the offer.

For revocation by communication to be valid, the communication must be clear and unambiguous. It should explicitly state the intention to revoke the offer and provide sufficient information to identify the offer being revoked.

The offeror can revoke the offer using any mode of communication that is reasonable under the circumstances. However, it’s essential to choose a method that ensures the offeree receives the communication in a timely manner.

The effectiveness of revocation by communication is determined by the offeree’s receipt of the communication, rather than the offeror’s transmission of it. If the offeree is unaware of the revocation and accepts the offer, a contract may still be formed.

  • Byrne v. Van Tienhoven (1880):
    • In this case, Van Tienhoven sent a letter from Cardiff offering to sell a certain quantity of tin plates to Byrne in New York at a specified price. The next day, Van Tienhoven sent another letter revoking the offer.
    • However, before Byrne received the revocation letter, he sent a telegram accepting the offer. Byrne then sued Van Tienhoven for breach of contract when he learned of the revocation.
    • The court held that the revocation of the offer was not effective until it was communicated to Byrne. Since Byrne had already sent his acceptance before receiving the revocation, a contract was formed between the parties.

By Failure of the Acceptor to fulfill a Condition Precedent to the Acceptance

Revocation of an offer by failure of the acceptor to fulfill a condition precedent to acceptance occurs when the offer is contingent upon the occurrence of a specific event or condition, and that condition is not met within the specified timeframe. (Refer Section 6(c) of the Act)

Sometimes, an offer includes conditions that must be met before acceptance can occur. These conditions are known as conditions precedent. The offeror specifies these conditions as requirements for the acceptance of the offer.

If the condition precedent is not fulfilled within the specified timeframe or before the offeree accepts the offer, the offer is considered revoked. In other words, the failure to meet the condition prevents the formation of a contract.

For instance, assume Edgar offered 1 Million Tanzania Shillings to anyone who manages to find his Wallet, with all necessary things in it including credit cards and ID’s.

However, James manages to find the prescribed wallet but without any belongings inside the Wallet as mentioned by Edgar, and demands his reward.

Under this circumstance, Edgar is not obliged to pay such a reward to James, because James has not fulfilled the terms and conditions of the Offer made by Edgar, which was to deliver the Wallet with all his prescribed belongings in it.

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Revocation by failure of the acceptor to fulfill a condition precedent is effective automatically when the condition is not met. The offeror does not need to communicate the revocation to the offeree because the offer itself is contingent upon the condition being fulfilled.

By Death Or Insanity of the Promisor

Where the promisor dies before the proposal is accepted and the promisee is aware of the death it would regarded as the proposal has lapse and thus, becomes incapable of acceptance. There may be instance where the offeree accept in ignorance of the fact that the promisor is dead, at the time of acceptance of an offer. (Refer Section 6(d) of the LCA)

If the promisor becomes legally insane after making the offer but before it is accepted, the offer may also be revoked. Insanity can affect the promisor’s capacity to understand the terms of the offer and enter into a contract.

However, the revocation of the offer due to insanity may depend on whether the insanity was known or foreseeable by the offeree. If the offeree is unaware of the promisor’s mental state and accepts the offer in good faith, a contract may still be formed.

If the offer is revoked due to the promisor’s death or insanity before it is accepted, no contract is formed between the parties. The offeree cannot hold the estate of the deceased promisor or the legally incapacitated promisor liable for failing to fulfill the terms of the offer.

Communication of Acceptance

A communication of acceptance refers to the act of formally communicating one’s agreement to the terms of an offer. In contract law, acceptance is a crucial element in the formation of a contract

Acceptance must be communicated to the offeror (the person making the offer) or their agent or representative. Silence or inaction generally does not constitute acceptance unless there is a prior agreement or course of dealing between the parties that implies acceptance through silence.

it is essential for acceptance to be clear, unequivocal, and communicated in accordance with the requirements of the offer and applicable contract law principles.

Mode of Communication of a Proposal

A proposal may be either expressed or implied since the proposal has to be communicated for the person to whom it is intended, then it is communication may be made either expressed or implied. (Read Section 9 of the LCA)

The communication of a proposal is deemed to be made by an act or omission of the parties proposing and which has the effect of communicating it where a proposal is made in words it is said to be expressed and where it made otherwise is said to be otherwise.

An acceptance which only remains in the past in the chest of the acceptor without being actual or by legal implication communicated to the offeror is not binding acceptance.

  • Felthouse v. Bindley (1862):
    • In this case, Mr. Felthouse wrote to his nephew, Mr. Bindley, stating that he was interested in purchasing a horse and instructed his nephew to let him know if he wished to sell the horse.
    • Mr. Bindley decided to sell the horse and informed the auctioneer to include it in an upcoming sale. However, Mr. Felthouse did not communicate his acceptance of the offer to purchase the horse.
    • The court held that there was no contract between Mr. Felthouse and Mr. Bindley because Mr. Felthouse’s offer had not been accepted through communication. Mr. Felthouse’s mere intention to purchase the horse was not sufficient to form a contract.

Like a proposal an acceptance must be communicated and such communication must be complete

  1. Express Acceptance: Acceptance can be communicated explicitly, such as through spoken or written words, emails, letters, faxes, or any other form of direct communication.
  2. Implied Acceptance: Acceptance can also be implied from the conduct of the offeree (the person receiving the offer) if their actions clearly indicate agreement to the terms of the offer. For example, if someone orders goods or services after receiving a quotation or proposal, their act of order can be considered implied acceptance of the offer.
  3. Mirror Image Rule: Acceptance must mirror the terms of the offer exactly. This means that the offeree must accept the offer as it was presented, without adding new conditions or changing the terms. Any changes to the offer constitute a counteroffer rather than acceptance.

When communication of acceptance is complete?

Communication to Agents.

When an agent is authorized to receive acceptance then communication to the agent is as good as communication to the principles.

Both parties need to ensure that the communication is properly directed to the authorized agent and that the agent has the requisite authority to act on behalf of the principal.

Communication in accordance with terms of a proposal.

In some cases, the proposal may either be expressly or impliedly accepted in person in such case the offeree needs to follow only the indicated method of acceptance, as prescribed in the offer.

Communication of acceptance by post.

Communication of acceptance by post refers to the situation where acceptance of an offer is conveyed through mail or postal services.

This method of communication is common in contract law and can have specific rules and implications

Postal Rule: The postal rule, also known as the mailbox rule, states that an acceptance is effective as soon as it is posted, regardless of when or whether it is actually received by the offeror. This rule was established in the case of Adams v. Lindsell (1818).

For acceptance by post to be effective, it must be properly posted, which typically means:

  • Using the correct address and postage.
  • Posting the acceptance in a timely manner so that it reaches the offeror within the specified time frame, if any.
  • Following any other requirements specified by the offeror regarding the method or timing of acceptance.

The risk of delay or loss of the acceptance in the mail is generally borne by the offeree. Therefore, if the acceptance is delayed or lost and does not reach the offeror within a reasonable time, the acceptance may not be effective.

Exception to the Postal Rule: There are exceptions to the postal rule, such as:

  • If the offeror specifies a different method of acceptance or requires acceptance to be communicated in a particular way.
  • If the offeror receives notification of the revocation of the offer before receiving the acceptance.
  • If the acceptance is not properly posted, such as if it is delayed or lost in the mail due to the fault of the offeree.

In Tanzania, the position is different. Under LCA section 4 (2) (i) communication of acceptance is completed as against the proposer when it is put to the cause of transmission as so as to be out of the powers of the acceptor.

Revocation of acceptance

Revocation of acceptance refers to the act of withdrawing or canceling an acceptance before it becomes legally binding and forms a contract. While revocation of acceptance is not as common as revocation of an offer, there are certain circumstances in which it may be possible.

Section 5(2) of LCA provides that an acceptance may be revoked at any time
before the communication of the acceptance is complete as against the acceptor, but not afterward.

That means once acceptance is communicated and the contract is formed, it cannot be revoked unilaterally by the offeree.

Revocation of acceptance may be possible if both parties agree to cancel the contract before it takes effect.

This typically requires clear communication and mutual consent between the parties.

If the offeree attempts to revoke their acceptance after the contract has already taken effect, the offeror may have legal remedies available, such as suing for breach of contract or seeking specific performance of the contract

Conclusion

I trust that the concepts elucidated here have been comprehensible and enlightening.

Please don’t hesitate to share your thoughts or pose any questions you may have regarding this discussion. Your feedback is greatly valued and encouraged.

Don’t forget to like and share these notes with your colleagues

This post was originally written by Kelvin John and edited, fact-checked, and enhanced by Isack Kimaro.

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