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Offers may be withdrawn at any time up until acceptance Discuss the extent to which you agree with this statement and analyse the rules which determine the validity of the withdrawal of an offer.

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Question : ? Offers may be withdrawn at any time up until acceptance? Discuss the extent to which you agree with this statement and analyse the rules which determine the validity of the withdrawal of an offer. The English law on the formation of contract generally requires there to be an offer and acceptance. By the presence of both only then a legally binding bilateral contract can be formed. It is not necessary for a contract to be in a written form. A contract is an exchange of promises and it lies fundamentally at the heart commercial transaction. Contract is an agreement between a person who makes an offer which is known as an offeror and a person who accepts the offer which is known as and offeree. An offer can be accepted or even rejected. ...read more.


Besides, the revocation of an offer does not have to be communicated by the offeror to the offeree personally as it could also be done by a reliable third party such as the offeror?s lawyer or agent. This was illustrated in the case of Dickinson v Dodds whereby the defendant offered to sell his house to the plaintiff and the offer was opened until the 12th June. But the defendant sold his house on the 11th June to a third party and the plaintiff heard about it through a fourth man and later accepts the offer. However, the Court of Appeal held that the offer had been revoked by the communication of a fourth man. In withdrawal of an offer, if an instantaneous method of communication such as fax, telax, or telephone was used to communicate it?s withdrawal, it will instantly take effect as shown in Entores v Miles . ...read more.


It is immaterial whether the offer is expressed to be open for acceptance for a given time or not. An offer can also be withdrawn if it was not properly addressed, stamped and posted. Last but not least, an offer can also be withdrawn when the specified length of period has ended. And if the offeror has not mentioned how long the offer will remain valid, it will also lapse after a reasonable length of time depending on the subject-matter of the contract. For perishable goods such as food, a "reasonable time" would likely be a matter of days. The "reasonable time" would be longer where the subject matter of the contract is a building. In conclusion, it is indeed true that offers may be withdrawn at any time up until acceptance, provided that the offeror followed the rules of a withdrawal. ...read more.

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