LAW Using the IRAC method On the 5th August Oscar writes to

LAW

Using the IRAC method

On the 5th August, Oscar writes to Angus and offers to sell him his boat for $20,000. Oscar decides he loves his boat and now does not want to sell it so on the 7th August Oscar writes another letter to Angus telling him he revokes his offer. Angus writes a letter to Oscar on the 7th August accepting Oscar’s offer to buy the boat. Angus receives Oscar’s letter on the 8th August revoking his offer. Oscar received Angus’ letter of acceptance on the 9th August and is now saying that they do not have an agreement because he revoked the offer. Advise Oscar whether he has to sell the boat to Angus. Use relevant cases to support your answer.

Solution

Analysing the given law case using IRAC (Issue, Rule, Analysis, Conclusion) method:

Issue - Whether Oscar has to sell the boat to Angus or not?

Rule - The rule of law says that though, an offer can be withdrawn before it is accepted, the contract is said to be completed when the letter of acceptance of the offer is posted. However, the rule is not applicable for the withdrawal of an offer by merely posting a letter.

Analysis - The given case is similar to Byrne & Co v Leon Van Tien Hoven & Co [1880] 5 CPD 344 case on the issue of revocation in relation to the postal rule. Here, Oscar offers to sell his boat to Angus on 5th August for $20,000 through writing a letter. Angus duly accepts the Oscar’s offer to buy the boat by responding through a letter on 7th August. In the interim, Oscar decided to not to sell the boat and instead, wrote another letter of revoking the offer on 7th August that Angus receives on 8th August. Oscar received Angus’ letter of acceptance on 9th August but now he is not willing to sell his boat and denies entering into any sort of agreement with Angus. However, as per the rule of law, there was an acceptance of the offer that took place on 7th August when Angus posted his letter accepting the offer to buy the boat. Now, Oscar cannot revoke his initial offer by simply writing a letter of revocation and is legally obligated to abide by his offer that he made on 5th August to sell his boat to Angus for $20,000.

Conclusion - Owing to the legal obligation, Oscar will have to sell the boat to Angus in accordance to the offer he made to Angus on 5th August by writing a letter. Oscar and Angus entered into a legal agreement when Angus accepted his offer on 7th August by writing a letter of acceptance.