Skip to content

ACCA Applied Skills · Corporate and Business Law (Global) · Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms

Alba Ltd (State A) emails Brenton Co (State B) offering to sell 500 tonnes of steel at a stated price, stating the offer is open until 30 June. Both states are CISG contracting states and the parties are both businesses. On 20 June Alba Ltd emails Brenton Co withdrawing the offer. Brenton Co had not yet replied. Under the CISG, what is the position?

The withdrawal is ineffective. Under the CISG, an offer that states a fixed time for acceptance is treated as irrevocable, so Alba Ltd cannot revoke it before 30 June, and Brenton Co may still accept within that period.

  1. AThe withdrawal is effective because an offer can always be revoked before acceptance
  2. BThe withdrawal is ineffective because the offer stated a fixed time for acceptance, indicating it is irrevocableCorrect
  3. CThe withdrawal is effective because the offer was not in a signed written document
  4. DThe withdrawal is ineffective only if Brenton Co has paid a deposit

Explanation

Under the CISG an offer cannot be revoked if it indicates, by stating a fixed time for acceptance or otherwise, that it is irrevocable. Alba Ltd fixed 30 June, so the 20 June revocation is ineffective. The first option reflects the general common law idea, which the CISG limits.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC IncotermsFree diagnostic mock

More Introduction to the UN Convention on Contracts for the International Sale of Goods and ICC Incoterms questions