Byrne co v leon van tiehoven co where the defendants

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Byrne & Co v Leon Van Tiehoven & Cowhere the defendants inCardiff offered to sell goods in a later posted on the 1stof October.,the plaintiffs in new York telegrammed their acceptance on 11October , The defendants meanwhile posted a letter revoking theoffer on 8 October but the revocation letter arrived on October 20.The defendant refused to deliver the goods. The revocation washeld to be inoperative until the 20thand the contract was upheldsince acceptance was made on the 11th.4.Lapse/Effluxion of time- if an offer is for a fixed period of time andthe offeree does not accept the offer within the prescribed timethen the offer will terminate or lapse. Even where there is no timelimit specified the offer must be accepted within reasonable timeotherwise it lapses. It is an implied term in every offer that it mustbe accepted with reasonable time failure of which the offeree will beheld to have rejected the offer.Generally an offer lapses in the following waysa)After reasonable time- Ramsgate Victoria Hotel & Co vMontefiore: M applied for shares in the hotel company on 8June but no allotment was made until November 23. On
November 8 he withdrew his application. It was held that theallotment must be made in reasonable time, it was not madeand so the offer lapsedb)If not accepted within prescribed time-Laws vRutherford: R gave a 3 months option to enter into contractto cut timber on her farm which expired on July 26. Havinghad nothing R asked L to remove certain plant he had erectedon the farm. On July 28 by letter and 29 by telegram Lpurported to exercise the option. HELD: as L had not notifiedhis acceptance within the fixed time a rule nissi( provisionalcourt order) interdicting him from cutting timer had beenproperly been made final.c)If the intended performance becomes illegal orimpossible, Wilson v Smith & Anor.Rules of Acceptance.In order for a contract to come into being the offer ought to accepted. It followstherefore that if offer is not accepted, no contract can come into being, andneither party (offeror and offeree) acquires rights until valid acceptance is made.Requirements of a valid acceptance.1.Must be definite and unequivocalIt must also exactly correspond with the terms of the offer. Thus offer mustbe accepted as it is stands and any alterations or conditional acceptancemay make the purported acceptance a counter-offer instead whichcancels the original offer( see Hyde v Wrench, Watermeyer v MurrayandJones v Reynolds) NB The offeror may accept the counter-offer but if hedoes not the counter-offeror cannot insist on reverting back to the originaloffer unless the original offeror agrees. However a request forconsideration of the the offer for some variation in the manner ofperformance e.g. asking for credit where offeror has not specified cashdoes not constitute a counter-offer.

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