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Termination of Offers in Contract Law

Apr 14, 2025

Lecture Notes: Termination of Offers in Contract Law

Introduction

  • Discussion on termination of offers within the context of contract law.
  • Previous lectures covered the concept of what constitutes an offer and acceptance.
  • Focus on various modes of terminating an offer.

Modes of Terminating an Offer

  1. Revocation or Withdrawal of an Offer

    • An offer can be revoked any time before acceptance.
    • Revocation must be communicated to the offeree.
    • Common Law Position: The promise to keep an offer open is not binding without consideration.
      • Case: Routledge v. Grant
    • Ghanaian Law (Contracts Act of 1960, Section 81): A promise to keep an offer open is binding even without consideration.
      • Modification from common law.
    • Case: Byrne & Co. v. Leon Van Tienhoven
      • Revocation is effective only when communicated to the offeree.
    • Case: Dickinson v. Dodds
      • Revocation can be communicated by a reliable third party.
  2. Unilateral Contracts

    • Once performance begins, the offer cannot be revoked.
    • Case: Errington v. Errington & Woods
      • Performance signifying acceptance cannot be revoked.
  3. General Offers

    • Revoked with the same prominence as offered.
    • Case: Shuey v. United States
      • Revocation must be as public as the offer.
  4. Rejection by the Offeree

    • Once rejected, the offer cannot be later accepted.
    • Example: Counter-offers can be considered rejections.
  5. Lapse of Time

    • An offer can terminate if not accepted within a reasonable time.
    • Case: Ramsgate Victoria Hotel Co v. Montefiore
      • Offers will lapse if not accepted in a reasonable timeframe.
  6. Occurrence of a Specified Event

    • Offers may specify termination upon a specific event.
    • Example: "Offer valid until the end of the ongoing war."
  7. Death of the Offeror

    • An offer terminates if the offeror dies before acceptance.

Conclusion

  • The lecture covered various modes of terminating offers in contract law.
  • Understanding these principles is essential for navigating offer and acceptance in legal contexts.

  • This lecture concludes the series on offer and acceptance in contract law.