Restatement (Second) of Contracts · Section § 42
Section 42 outlines the general rule regarding revocation of offers and the requirement for communication.
Source: Restatement Restatement (Second) of Contracts § § 42
An offer is not revoked by the offeror after it has been dispatched, even if the offeree has not yet received the offer.
Section 42 establishes that once an offer is sent (dispatched) by the offeror, it cannot be revoked until the offeree has received it. This means that the offer stands valid for acceptance by the offeree regardless of whether the offeror communicates any other intentions to withdraw it before the offeree gets the offer.
The timing of revocation is crucial; revocation must be communicated to the offeree to be effective.
An offer that has been dispatched is considered effective once it is sent, not once it is received.
Illustration 1
If A sends an offer to B via mail, the offer remains valid until B either accepts it or learns of A's revocation.
Illustration 2
If A mails a revocation before B receives the offer but B has not yet accepted, the offer remains effective until B has knowledge of the revocation.
This case demonstrated the principles of offer and acceptance, emphasizing that revocation must be communicated.
This case illustrated the effectiveness of an offer once dispatched, showing acceptance can form a contract without having prior communications of acceptance.
Understanding Section 42 is important for both offerors and offerees in contract negotiations, as it clarifies the timing and process of revocation. It helps parties recognize when an offer remains available for acceptance and ensures they communicate effectively about offers and their retraction.