Dickinson v. Dodds (1876) — Revocation of Offer

Quick Summary

In Dickinson v. Dodds, the seller promised to keep an offer open till Friday. He sold the house to someone else on Thursday. The buyer heard this from a third party. The court said: a simple promise to keep an offer open is not binding unless paid for (consideration). Revocation before acceptance is valid, and notice through a reliable third party is enough.

Issues

• Was the “keep open till Friday” promise a binding contract?
• Could the seller revoke the offer by selling to a third party before acceptance?
• Is third-party information of revocation valid notice?

Rules

• An offer can be withdrawn any time before acceptance unless an option supported by consideration exists.
• Revocation must reach the offeree, but it need not come directly from the offeror; reliable third-party notice can suffice.

Arguments

The court rejected the claim for specific performance. The promise to keep the offer open was only a promise, not a contract. Since there was no consideration for that promise, Dodds could revoke at any time before acceptance. Dickinson’s knowledge of the sale, even via a third party, meant the offer was effectively withdrawn before he accepted.

Ratio Decidendi

Unless backed by consideration, an offeror may revoke the offer any time before acceptance. Revocation is valid if the offeree learns of it from a trustworthy source, because it shows the offer is no longer open to them.

Why It Matters

• Clarifies that “keep open” promises need consideration (option contracts).
• Shows third-party notice can be effective revocation.
• Guides drafting: use earnest money or option fees to lock offers.

Key Takeaways

Mnemonic + 3-Step Hook

Mnemonic: “DODDS DEALS DONE” → Deal can be Done away before acceptance; Option needs payment; Disclosure by others can revoke.

1. Check Consideration: Was there payment to hold the offer?
2. Check Timing: Did acceptance come after revocation?
3. Check Notice: Did the offeree know—directly or indirectly?

IRAC Outline

Issue

Is a “keep open till Friday” promise binding, and was revocation valid before acceptance?

Rule

Free revocation before acceptance; option requires consideration; third-party notice can be effective.

Application

No consideration supported the promise. Buyer learned of the sale on Thursday. His later “acceptance” could not revive a revoked offer.

Conclusion

No enforceable contract arose; specific performance was rightly refused.

Glossary

Consideration

Something of value given in return; needed to bind an option.

Option Contract

A paid right to keep an offer open for a set time.

Revocation

Withdrawal of an offer before acceptance.

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