ACCA LW · Chapter 2 · Question 5 of 12
On 1 May Dev offers to sell land to Eve and promises to keep the offer open until 10 May. Eve gives nothing for this promise. On 5 May Eve learns from a reliable third party that Dev has sold the land to someone else. On 7 May Eve purports to accept. What is the legal position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) There is no contract, because the offer was effectively revoked when Eve learned of the sale from a reliable source
Explanation
A promise to keep an offer open is not binding unless supported by consideration (Routledge v Grant), so Dev could revoke before acceptance. Revocation must be communicated, but Dickinson v Dodds shows that communication via a reliable third party is sufficient. Eve's attempted acceptance came after the effective revocation.
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