Facts
Wrench offered to sell his farm in Luddenham to Hyde for $1200, an offer which Hyde declined.On 6 June 1840 Wrench wrote to Hyde’s agent offering to sell the farm for $1000,stating that it was the final offer and that he would not alter from it. Hyde offered &950 ,and after examining the offer Wrench refused to accept, and informed Hyde of this on 27 June.On the 29th Hyde agreed to buy the farm for $1000 without any additional agreement from Wrench ,and after Wrench refused to sell the farm to him he sued for breach of contract.
Judgment
Lord Langdale ruled that any counter-offer cancels the original offer.
IV.Revocation of Offer
S5(1)Contract Act 1950 provides “a proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer , but not afterwards”
Eg:
A proposes , by letter sent by post, to sell his house to B.
B accepts the proposal by a letter sent by post.
A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance but not afterwards.
S6 Contract Act 1950 provides that a proposal is revoked:
a. When the proposer communicated the revocation of the proposal to the other party before its acceptance.
Byrne v Van Tienhoven [1880] Fact
On 1 October 1880 Van Tienhoven wrote from an office in Cardiff offering tin plates for sale to Byrne,who was in New York. They sent a letter revoking the offer on the 8th, which did not reach New York until the 20th. Byrne received the first letter offering plates on the 11th,and sent a telegram back the same day accepting the offer .A letter was then sent on the 15th again confirming the acceptance of the offer.
Judgment
There was a contract between the parties because the revocation of the offer posted pn the 8th October was only effective on 20 October (when the pl received it ). The pl had accepted the offer on 11 October (when he sent the telegram accepting the offer).The court ruled that an offer