Tuesday 27 April 2010

Dahlia v Four Millbank [1978] Ch 231

Dahlia v Four Millbank [1978] Ch 231 In this case potential purchasers were told that if they could produce a bank draft for a certain amount of money by 10 am the following day, they could buy a property. When the plaintiffs tried to hand over the draft before the deadline the defendants changed their minds and duly refused to accept the draft or complete the deal.
Held: There is an implied obligation for the offeror not to prevent the condition becoming satisfied. The obligation must arise as soon as the offeree starts to perform. However, until then the offeror can revoke, but once the offeree has embarked on performance it is too late for the offeror to revoke his offer.

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