Discussion On The Rationality Of Irrevocable Offer

Abstract：With the development and prosperity of economy, legal system buildingwhich comes along will need to be completed and regulated and also do the laws. Inrecent commercial activities, a process that using an offer or an acceptance to form acontract is essential. During this process, the core legal question is the validity of anoffer, however, the essence of it is the grant, limitation and expansion of the offeree’scommitment authority. The validity of an offer which sent by the offeror will havedifferent situations depends on the limitation and expansion of the offeree’scommitment authority by laws. The domestic civil legislation which synthesizes theregulations of the offer of common law and civil law classifies almost all offers asrevocable offers. As for the irrevocable offers, there are three situations. The first twoare relatively clear; the third one is debatable because it based on the Judge’sdiscretion which is vague and lack of directivity. The first part of this article beginswith theory of the offer, stating the differences between withdrawal and revocation ofan offer in “Contract Law” and further analyzing the specific situations of the offers.The second part is under the background of the irrevocable offers, first comparing theprovisions of the irrevocable offers of many countries in civil law systemlongitudinally, and then analyzing the development process of the offer undercommon law system and civil law system in different ages. Finally transverselysummarize the distinct regulations of the irrevocable offers between the two lawsystems and proceed to the author’s points of the irrevocable offers. The third partanalyzes provisions about irrevocable offer in German Civil Law in the continental law system and also the development of irrevocable offer which develops fromnothing in the offer theory in common law system. This chapter also analyzesproblems of efficient breach theory and the research angle of Chicago objectively,jumping out of the single system, of which economic value is the measure. The essayemphasizes on arguing the feasibility of internal legislation on irrevocable offerthrough referring to economic theories such as opportunity cost, the law ofdiminishing marginal utility. The essay also analyzes whether the offer is revocablethrough the measurement of gross social economic value and equivalent exchangebetween the offeror and offeree.This article is under the basic frame of the civil andcommercial law. The author chooses to use the view of economics who expects it canbe helpful for making a balance on efficiency and equity in legislation andimplementation of the offer.