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Contract Revocation Before Acceptance
Summary
A contract requires offer, acceptance, consideration, and intention. An offer can be revoked before acceptance, as seen in Payne v Cave and Dickinson v Dodds. In this case, Kofis offer to Ama was revoked when she learned of the sale to his son-in-law before her acceptance. The postal rule does not apply if revocation is known before posting acceptance. Therefore, no binding contract existed between Ama and Kofi.Full Conversation
Question *
Issue:
Did Ama have a binding contract with Kofi for the sale of the house?
Rule:
An offer must be accepted before it is revoked. Relevant case law includes Payne v Cave and Dickinson v Dodds.
Application:
- Kofi made an offer to Ama for the house at *,* GHC.
- Kofi sold the house to his son-in-law before Ama accepted the offer.
- Ama’s acceptance was posted after the revocation of the offer.
Conclusion:
No binding contract existed between Ama and Kofi as the offer was revoked before Ama’s acceptance was communicated.
Issue:
Did Ama have a binding contract with Kofi for the sale of the house?
Rule:
An offer must be accepted before it is revoked. Relevant case law includes Payne v Cave and Dickinson v Dodds.
Application:
- Kofi made an offer to Ama for the house at *,* GHC.
- Kofi sold the house to his son-in-law before Ama accepted the offer.
- Ama’s acceptance was posted after the revocation of the offer.
Conclusion:
No binding contract existed between Ama and Kofi as the offer was revoked before Ama’s acceptance was communicated.
Sure, let's delve deeper into Question * using the IRAC formula:
## Question *
## Question *
Issue:
Did Ama have a binding contract with Kofi for the sale of the house?
Did Ama have a binding contract with Kofi for the sale of the house?
Rule:
For a contract to be binding, there must be an offer, acceptance, consideration, and intention to create legal relations. An offer must be accepted before it is revoked. Relevant case law includes:
- Payne v Cave: An offer can be revoked at any time before acceptance.
- Dickinson v Dodds: An offer is revoked if the offeree learns of the revocation from a reliable source before acceptance.
For a contract to be binding, there must be an offer, acceptance, consideration, and intention to create legal relations. An offer must be accepted before it is revoked. Relevant case law includes:
- Payne v Cave: An offer can be revoked at any time before acceptance.
- Dickinson v Dodds: An offer is revoked if the offeree learns of the revocation from a reliable source before acceptance.
Application:
- Offer: Kofi made an offer to Ama to sell the house for *,* GHC, with a deadline for acceptance by noon on Friday.
- Revocation: On Wednesday, Ama learned from her brother that Kofi sold the house to his son-in-law that morning. This information constitutes a reliable source of revocation under Dickinson v Dodds.
- Acceptance: Ama posted her acceptance letter after learning of the revocation. Although the postal rule (acceptance is effective upon posting) applies in some cases (Adams v Lindsell), in this situation, the offer was already revoked when Ama posted her acceptance. The postal rule does not apply if the offeree is aware of the revocation before posting their acceptance.
- Offer: Kofi made an offer to Ama to sell the house for *,* GHC, with a deadline for acceptance by noon on Friday.
- Revocation: On Wednesday, Ama learned from her brother that Kofi sold the house to his son-in-law that morning. This information constitutes a reliable source of revocation under Dickinson v Dodds.
- Acceptance: Ama posted her acceptance letter after learning of the revocation. Although the postal rule (acceptance is effective upon posting) applies in some cases (Adams v Lindsell), in this situation, the offer was already revoked when Ama posted her acceptance. The postal rule does not apply if the offeree is aware of the revocation before posting their acceptance.
Conclusion:
No binding contract existed between Ama and Kofi as Ama’s acceptance was posted after being informed that the offer was revoked. According to Payne v Cave and Dickinson v Dodds, an offer is not binding if it is revoked before acceptance is communicated. Therefore, Kofi was within his rights to revoke the offer and sell the house to his son-in-law.
Feel free to ask if you need further elaboration or have additional questions!
No binding contract existed between Ama and Kofi as Ama’s acceptance was posted after being informed that the offer was revoked. According to Payne v Cave and Dickinson v Dodds, an offer is not binding if it is revoked before acceptance is communicated. Therefore, Kofi was within his rights to revoke the offer and sell the house to his son-in-law.
Feel free to ask if you need further elaboration or have additional questions!
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