Termination of a Revocable Offer Flashcards
Revocation
Effective upon receipt
How can offers be terminated?
- Lapse of time in offer
- Death or mental incapacity
- Supervening destruction or illegality
- When the offere gathers reliable information that the offe’or engaged in conduct which indicates the offer is no longer open.
Lapse of time
The time generally starts to run from the time the offer is received, not sent, unless the offer indicates otherwise
Death
If an offer has been accepted, the death of the offeror will not necessarily terminate the contract
An offer is terminated (if not accepted) upon death, but not a contract (a contract is still valid and open)
Supervening destruction or illegality
An offer involving something that becomes destroyed or illegal is automatically terminated
HYPO → you supply me with a certain type of concrete (open contract), and someone is buying a certain amount, and then CA makes that concrete illegal, that supervening illegality makes the contract void
Face-to-Face
If an offer is made face to face and then the OR and OE go their separate ways => offer terminates:
(a) Unless terms have been made indication otherwise
(b) Offer made over the phone counts as face to face
Offer is open for 8 days
Traditional rule: starts the next day after the letter had been sent
Modern rule: starts the day the letter is received
If there is no stated time for offer terminating
Offer terminates after a reasonable time
OR Dies When Offer is Still Open
Traditional: The death of the offe’OR does terminate an offer whether or not the offeree knows about it unless consideration was furnished for the offer to be open
Modern View: Offeree knew or should have known that the offer’OR died taking the offer off the table.
Adjudicated Incompetency
A) Minority rule: revocable offers terminates regardless of knowledge by O’E.
B) Traditional rule/ majority rule: if the offere has reason to know or knows that the person is incompetent, then the offer terminates.
