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Hello Sir,
I am bit confident on the distinction between these terms.
Specifically I know I can withdraw an offer up to the time it reaches the offeree. Whereas for revocation, I understand that I can revoke an offer after it reaches the offeree but before their acceptance.
So in this question from past exam:Yeo sends a written offer to Zal stating the offer will be open until 14.7. The offer reaches Zal on 7.7. But on 12.7 Yeo decides he no longer wishes to be held to the offer.
The correct answer states that Yeo cannot withdraw not revoke the offer.Why cannot this offer be revoked?
Thank you
Leo
I think (I’m hoping!) that this is more complicated than the summary details that you have posted!
Is there no mention of Zal having posted acceptance before Zal receives the notification of revocation? If that were the case, Yeo would be unable to withdraw or revoke the offer
Is there no mention of Zal having paid consideration to Yeo in exchange for being granted time to consider the offer?
If that option period IS supported by consideration from Zal to Yeo, then I can understand the answer saying that Yeo can neither withdraw nor revoke
However, if there is no mention of Zal having paid anything to ‘buy’ that option period, then I cannot see why Yeo is not able to revoke
I’m not sure if that helps!
Hi Sir,
Thank you for the reply, I am still not completely clear about it…
The question is n.43 pag.3 from the “examiner’s report – Jun2016” withing the ACCA examining team guidance.I cannot read any mention of Zal having paid a consideration to Yeo but the correct answer still is option D (Yeo cannot revoke or withdraw the offer).
Is there something I am not seeing?As a general rule, could I confirm with you if this is correct and exhaustive?
Withdrawal=only before offer reaches offeree.
Revocation=anytime before acceptance but if the offeree specifically pays a consideration for a “thinking period” the offer cannot be revoked.
Thank you
Leo
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