Also known as: powers of revocation · revocation power · power to revoke
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
An authorization retained by an offeror to withdraw an offer before acceptance. An option contract eliminates this power by creating an irrevocable offer that remains open for the stated period or until the invited performance is completed or tendered.
An authorization retained by an offeror to withdraw an offer before acceptance. An option contract eliminates this power by creating an irrevocable offer that remains open for the stated period or until the invited performance is completed or tendered.
Select any source to read its text and confirm it supports the definition.
Authority retained by a settlor to terminate a trust and reclaim the property. Retention of this power renders the trust revocable, so the trust assets remain subject to the settlor's creditors during the settlor's lifetime and the settlor is treated as the owner for tax and creditor purposes.
Select any source to read its text and confirm it supports the definition.
Authority retained by a settlor to terminate a trust and reclaim the property. Retention of this power renders the trust revocable, so the trust assets remain subject to the settlor's creditors during the settlor's lifetime and the settlor is treated as the owner for tax and creditor purposes.
Each sense below has its own examples, sources, and questions.
Frontier Outlet sent Barbara a signed letter offering to buy 500 dresses and reciting a $50 fee as consideration to keep the offer open. Barbara mailed the fee before Frontier attempted revocation. The option contract prevented the revocation from taking effect.
National Metal Crafters relied on a signed waiver of a delivery term. Wisconsin Knife Works later sought to treat the waiver as revocable. Because the waiver did not reserve a power of revocation, it bound the parties for the executory portion of the contract.
An option contract is formed when a promise meets contract requirements and expressly limits revocation. Once formed the offer becomes irrevocable for the stated period or until the invited performance is completed or tendered.
Supporting sources
William transferred assets to a trust naming Meredith trustee and retaining the power to revoke at any time. After Randy obtained a judgment against William, Randy reached the trust assets because the retained revocation power made the trust revocable.
Farkas created a trust for Williams with a retained power to revoke. Williams claimed the arrangement was merely a will. The court upheld the trust because the revocation power did not destroy the beneficiary's present equitable interest during Farkas's life.
Dore transferred property to a trust retaining income, revocation power, and control. After his death his wife claimed her elective share. The court included the trust assets in the estate because the retained revocation power left Dore with ownership for spousal protection purposes.
Burkin created a trust retaining income, principal invasion rights, and revocation power. After his death his wife sought her statutory share. The court held the trust assets reachable because the revocation power meant Burkin had not fully relinquished ownership during life.
A trust is revocable when the settlor alone can terminate it without consent of the trustee or an adverse party. During the settlor's lifetime the assets of a revocable trust remain subject to the settlor's creditors because the settlor retains practical ownership.
Supporting sources
No. A trust remains valid even when the settlor retains a power of revocation. The beneficiary receives a present equitable interest that is subject to divestment only if the settlor exercises the power.
Supporting sources
The settlor must comply with any method specified in the trust instrument. Substantial compliance may suffice when the method's protective purposes are achieved, but failure to meet express requirements such as location or physical delivery renders the revocation ineffective.
Supporting sources
…not been otherwise adjudicated. Whether legal infractions must be otherwise adjudicated or not, the mayor clearly retains the power to revoke a license for "flagrant disregard," should infractions occur at any time after the license's issuance. [^maj-6]: Interstate Circuit disposes of any argument that excessively vague…