THE POSITION OF THE LAW REGARDING TO REVOCATION OF AN OFFER BY A THIRD PARTY. By Umar Abdulmumeen kayode (Almudir official)

 THE POSITION OF THE LAW REGARDING TO REVOCATION OF AN OFFER BY A THIRD PARTY.

What is revocation?

What is an offer?

Who is a third party?

          Revocation is an annulment or cancellation of a statement or agreement. In the context of contracts, revocation may refer to the offeror canceling an offer.  That is to say "an offer may be revoked at any time before its acceptance is communicated to the proposer, but not afterwards.” Revocation may also refer to a buyer’s rejection of goods that do not conform to the contract specifications. Revocation of offer is the withdrawal of a previous offer to engage in some sort of legally binding contract. see the case of Payne v. Cave(1789) 3 TR 148 

           An offer, as an element of a contract is a proposal to

make a contract. It must be made by the person who makes the promise, and it must be made to whom the promise is made. It may be made either by

words or by signs, either orally or in writing form and either

personally or by a messenger but in whatever way it is

made, it is not yet an offer in law until it comes to the knowledge of the person  who made it.

         Third party means any person (including companies, partnerships, legal entities, churches, government authorities or agencies) who is not a party to the agreement.  A third party is a person who is not a party to the contract. Common law recognizes three significant third parties:

(I)Third-party beneficiary: If the parties to the contract intend a third party to be able to sue for enforcement of a promise made in the contract, then that  person is a third-party beneficiary.

(ii)Assignee: If a party transfers a right under the contract to a third party, that person is an assignee. The assignor (the one who assigned the rights) drops out of the picture and the obligor (the one who is obligated to perform) must perform for the assignee.

(iii)Delegate: If a party delegates a duty under the contract to a third party, that person is a delegate. The delegate must now perform the contract but the delegator (the one who was obligated under the contract to perform) remains liable for performance and breach. "Qui facit para lium facit per se"

 

  Now the question is, can a revocation from a third party regarded as a valid revocation?

       It is a settled law like a sugar in a cup of tea that a third party can  revoke an offer to a contract before the acceptance of the offer by the offeree. swe the case of DICKINSONv.DODDS.[1874 D. 94.].  It went further to establish that revocation of an offer could be made through social medias as far as it reaches the offeree before he accepts the offer.

         It is partinent to note that it is a well established principle that revocation of offer could only be valid when the revocation is communicated to the offeree before acceptance. see the case of Byrne & Co. v Leon Van Tienhoven & Co (1880) LR 5 CPD 344, Common Pleas Division.

         However, at common law the revocation of an offer by an act of a third party can only valid if the third party falls under any of the following;

(I)Third party beneficiary

(ii)Assignee

(iii)Delegate

    In conclusion, any other form of  third party apart from the above mentioned ones is not recognized in law. ultimately, any act of revocation from them is nul and void.

©️UMAR ABDULMUMEEN KAYODE (Almudir official).

  University of Abuja

  February 2022.