Can a formal settlement offer be revoked by an informal settlement offer?

British Columbia, Canada


The following excerpt is from Arsenovski v. Bodin, 2014 BCSC 199 (CanLII):

I do not accept the argument that a formal settlement offer is not revoked by an informal settlement offer. While that may have been the case under the language of former Rule 37, it is no longer the case under Rule 9-1. A settlement offer, formal or informal, is revoked upon the communication of a new settlement offer, formal or informal. I agree with the following statement of the law by Wilson J. in Sidhu v. Sekhon, [1997] B.C.J. No. 102 (S.C.) at para. 8: I think interpretation of the rule contemplates the application of principles of contract law. And that those principles must be implemented before resort is had to policy considerations. In my view, those principles establish a number of precepts. First, an offer may be withdrawn before acceptance. It is sufficient for that purpose, if the offeree has actual knowledge that the offeror has done some act inconsistent with the continuance of the offer. Further, the addition of a new term or condition, to an earlier offer, before acceptance, is the withdrawal of the earlier offer, and the submission of a new offer, of which the new condition or term is a part. From the time the new condition is submitted, the earlier offer is withdrawn, and is no longer open to acceptance or rejection, by the party to whom it was presented. Finally, there can be only one offer outstanding at a time. A later offer to the same offeree, on the same subject matter, has the effect of cancelling the prior offer.

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