Facts –
The defendant, Mr. Montefiore wanted to buy shares in the complainant’s hotel (Ramsgate Victoria Hotel). As part of his offer, he said that he wanted to buy shares of the hotel at a certain price from the complainant. Approximately six months after the offer was made, the complainant accepted the offer.
By this time, however, the value of the shares had declined, and Mr. Montefiore no longer had any interest in buying them. The defendant did not formally revoke the offer, but he did not proceed with the sale. The Complainant brought an action against the defendant for specific performance of contract.

The issue that was raised –
In this case, the main issue involved revocation of an offer by the lapse of a reasonable time. That is to say that, can an offer be said to have been revoked after a lapse of a reasonable period in case no certain or specific period has been mentioned for the acceptance.

Judgement –
The Court passed an order in favor of the defendant, Mr. Montefiore. According to the court, the company was not successful on its claim for specific performance because the Ramsgate Victoria Hotel had sufficient time to accept the defendant’s offer. A period of six months was sufficient for accepting an offer. The company accepted the offer after six months hence it was no longer valid due to expiry / lapses of a reasonable period of time. The Court was of the view that an offer must be accepted within the prescribed time and if a time is not prescribed then it must be accepted within a reasonable period of time.