Revocation

Revocation in foreign trade typically refers to one party revoking a previously made declaration of intent or legal act, such as revoking an offer, revoking an order, revoking a letter of credit, or revoking authorization. Unlike withdrawal, which applies to declarations that have not yet taken effect, revocation applies to declarations that have already taken effect. According to the United Nations Convention on Contracts for the International Sale of Goods (CISG), an offer is in principle revocable, but it may not be revoked if it states that it is irrevocable or if the offeree has reasonably relied on its irrevocability and has acted accordingly. Use cases include: the buyer revoking an order, the seller revoking an acceptance, the applicant revoking a letter of credit (requires the beneficiary's consent), revoking agency authority, etc. Points to note: the right of revocation may be limited by contract terms, law, or international practice; improper revocation may constitute a breach of contract and entail liability for damages; a notice of revocation must reach the other party before acceptance. Unlike 'termination,' revocation focuses on rendering a previously effective act invalid, whereas termination addresses the ending of a valid contract due to breach or agreed grounds. Foreign trade practitioners should clearly define the conditions, time limits, and consequences of revocation to avoid legal risks.