Mr
Subject:BusinessPrice:2.86 Bought4
Mr. Henry from Handsome Sdn Bhd wishes to sell his business to Mr. Macho for RM 2,000,000. He wrote a letter of offer to Mr. Macho on 20th June 2018 stating that if Mr. Macho agrees with the offer and responds through a letter of acceptance within two weeks by 4th July 2018, the business will be sold to him. Mr. Macho decided to accept the offer however he still needs his business partners to agree on the deal. He then letter to Mr. Henry on 26th June 2018 indicating that he want buy his business. On 28th June 2018, Mr. Henry has a meeting with his partners to discuss on buying Mr. Henry business but his proposal was rejected by his partners. Mr. Macho then quickly an e-mail to Mr. Henry to revoke his letter of acceptance on 29th June 2018. At the same time, Mr. Macho also sent a letter revoking his offer on the same day. However, Mr. Henry is with his family on vacation and did not read the e-mail sent by Mr. Macho.
Discuss the issues in relation to offer, acceptance and revocation with support of relevant authorities.
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Offer, acceptance and revocation
The acceptance to be binding and enforceable in law, the mode of communication must match that used when making the offer. The first acceptance made by Mar Macho via a letter of acceptance is enforceable as it matches the offer made via a letter of offer by Mr. Henry. For revocation to be enforceable and binding, it must also be made through the same mode that the offer was made (Che 2018). In this case, the revocation done through email is not binding. It does not matter if Mr. Henry sees the email or not since it does not count in the revocation. Also, the revocation must be done within the open days provided for by the promisor, Mr. Henry. Mr. Macho sends a revocation letter on date 29th June 2018. This is within the open date with ends on 4th. The letter of revocation sent later in binding even though Mr. Henry has not received it. Letters of acceptance or revocation are binding as long as the posting is done before the open date ends (Che 2018). The revocation holds and Mr. Macho cannot be considered to be in breach of the contract.
