Terminating an Offer Flashcards
(7 cards)
Revocation by Offeror
Manifestation of intent not to enter into a contract which can be revoked any time prior to acceptance even if offeror had promised to keep it open for some time.
Indirect Revocation
Where there is no express communication and a reliable source not an unsubstantiated rumor, provides offeree information that would lead a reasonable person to conclude that offer is revoked. Offer is revoked at the time that B learned that A had made the contract with C.
Death, Incapacitation or Insanity of Offeror
An Offer only terminates IF THE OFFEROR DIES BEFORE ACCEPTANCE, but after extending the Offer.
Lapse - Termination date specified
If the offer specifies a date on which the offer terminates, then the time fixed by the offer controls. If the offer states that it will terminate after a specified number of days, the time generally starts to run from the time the offer is received, not sent, unless the offer indicates otherwise.
Lapse - Termination date not specified
If the offer does not set a time limit for acceptance, the power of acceptance terminates at the end of a reasonable period. What is reasonable is a question of fact and depends on various factors, including the nature of the contract, the purpose and course of dealing between the parties, and trade usage. For an offer received by mail, an acceptance that is sent by midnight of the day of receipt generally has been made within a reasonable period. Unless otherwise agreed, if the parties bargain in person or via telephone, the time for acceptance does not ordinarily extend beyond the end of the conversation
Rejection by offeree
An offer is terminated by rejection (i.e., the offeree clearly conveys to the offeror that the offeree no longer intends to accept the offer).
A rejection is usually effective upon receipt. An offeree cannot accept an offer once it has been terminated.
Revival of offer
A terminated offer may be revived by the offeror and then accepted by the offeree.
