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

Calder Co offers by letter to sell machinery to Dunmore Co. Before Dunmore replies, Calder sends a fax saying the offer is withdrawn. The fax reaches Dunmore before Dunmore has sent any acceptance. The offer did not state that it was irrevocable or fixed a time for acceptance. Under the CISG, what is the position?

The offer is effectively revoked. Under the CISG, a revocation is effective if it reaches the offeree before the offeree dispatches an acceptance, provided the offer was not irrevocable. Dunmore had not accepted, and its consent is not required.

  1. AThe offer is effectively revoked because the revocation reached Dunmore before it dispatched an acceptanceCorrect
  2. BThe offer cannot be revoked once it has been received by Dunmore
  3. CThe revocation is ineffective unless Dunmore consents to it

Explanation

Under the CISG an offer may be revoked if the revocation reaches the offeree before the offeree has dispatched an acceptance, unless the offer is irrevocable. Nothing here made the offer irrevocable, and the offeree's consent is not needed. Dunmore had not yet accepted.

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