Revocation is a fundamental legal concept denoting the act of recalling, terminating, or canceling an authority, instrument, or offer. This term encompasses various scenarios in legal and business contexts where previously granted rights or promises are withdrawn or nullified.
Different Types of Revocation
Revocation of Authority
This occurs when a previously granted power or authorization is recalled by the grantor. For example, a principal may revoke a power of attorney given to an agent, thereby terminating the agent’s authority to act on behalf of the principal.
Revocation of Instruments
An instrument, in legal terms, refers to a written document such as a contract, will, or note that has legal significance. The revocation of an instrument involves the cancellation or nullification of its effectiveness. For instance, a testator (a person who has made a will) may revoke their will by creating a new will that states the previous one is void.
Revocation of Offers
In contract law, an offeror (the party making an offer) may revoke their offer before it is accepted by the offeree (the party receiving the offer). Effective revocation terminates the offeree’s power to accept the offer, thereby preventing the formation of a contract.
Special Considerations in Revocation
- Timing and Communication: For revocation to be effective, it must be communicated to the relevant party before acceptance (in the case of offers) or enforcement (in the case of instruments).
- Irrevocable Offers: Some offers, such as those supported by consideration in an option contract, cannot be revoked before the agreed-upon time period elapses.
- Statutory Requirements: Certain types of revocations, particularly for legal instruments like wills, may need to meet statutory requirements, such as being carried out in writing and witnessed.
Examples
- Legal Authority: A corporation may revoke an employee’s authority to negotiate deals on its behalf.
- Instruments: A trustor revokes a living trust by submitting a written notice of revocation to the trustee.
- Offers: An employer can revoke a job offer before the candidate accepts it, provided the revocation is clearly communicated.
Historical Context
Revocation principles have evolved over centuries, with roots in common law and Roman law traditions. The ability to revoke power, instruments, and offers aligns with the principles of contractual freedom and personal autonomy prevalent in many legal systems.
Applicability
- Contracts: Key in pre-contractual stages, particularly in determining when an offer remains open for acceptance.
- Estate Planning: Critical in will creation and modification processes.
- Business Transactions: Essential in scenarios where powers of attorney or authorizations are granted and later withdrawn.
Comparisons
- Revocation vs. Termination: While revocation generally refers to the withdrawal before a power or contract’s effect, termination typically denotes ending an already active agreement.
- Revocation vs. Rescission: Rescission refers to the undoing of a contract, treating it as if it never existed, often due to mutual mistake, fraud, or misrepresentation.
Related Terms
- Acceptance: Agreement to the terms of an offer, forming a binding contract.
- Consideration: Something of value exchanged between parties in a contract.
- Mutual Assent: Agreement by all parties to the terms of the contract.
- Power of Attorney: Legal document allowing one person to act on another’s behalf.
Frequently Asked Questions
Can an offer be revoked at any time?
Generally, yes, unless it’s an irrevocable offer supported by consideration or within the context of a sealed bid.
How does one revoke a will?
Revoking a will typically requires the creation of a new will that explicitly states the revocation of the previous one, or by physically destroying the original will with the intent to revoke it.
What happens if a revoked offer is accepted?
If the revocation was communicated before acceptance, the acceptance would be invalid, and no contract is formed.
References
- Restatement (Second) of Contracts, American Law Institute
- “Principles of Contract Law” by Robert A. Hillman
- Uniform Commercial Code, Article 2
Summary
Revocation is a vital legal mechanism allowing the withdrawal or cancellation of previously granted authority, contracts, or offers. Its proper execution and communication are essential to ensure clarity and adherence to legal standards. Understanding the nuances of revocation can prevent legal disputes and uphold contractual integrity.
