Termination of Offers

Section 6-2
Revocation by the Offeror
2. Time Stated in Offer
3. Reasonable Length of Time
4. Rejection by the Offeree
5. Counteroffer
6. Death or Insanity of Either the Offeror or
7. Destruction of the Specific Subject
#1 Revocation by the Offeror
The right to withdraw an offer before it is
accepted is known as the tight of revocation.
#2 Time Stated in Offer
The offeror may name a specific time that
the offer must be accepted of rejected by.
 Example: You have until October 15, and
8pm to accept or reject this offer.
#3 Reasonable Length of Time
When the offeror does not say how long the
offer is open, it will end after a reasonable
amount of time.
 Life of item may affect how long it will be
 An offer on a truckload of bananas will expire
before an offer on a bulldozer.
#4 Rejection by the Offeree
When the offeree declines or rejects the
offer, it is over.
#5 Counteroffer
If the offeree does not like the offer and
makes a change to it, he/she is making a
counteroffer and the original offer is over.
 Example: If James was offered $300 for a
truckload of bananas plus shipping to his store
and James says, “How about I pay you the $300
and you include the shipping?” James has ended
the original offer by making a counteroffer. James
is now the offeror.
#6 Death of Insanity of Either the Offeror or Offeree
Death and insanity eliminate offers.
 If Mark offers to sell his boat to Marshall and Mark
dies in the meantime, his offer is now ended and
Marshall cannot take advantage of it.
#7 Destruction of the Specific Subject Matter
If the item in the offer is destroyed or
damaged, the original offer is over.
 Example: Troy offered his expensive baseball
card collection to John for $5000. In the
meantime, Troy’s house was flooded and half of
his cards were now damaged and unreadable.
His original offer is over. He may now make a
new offer.
Options- if the offeree gives something of
value in return for a promise to keep the
offer open, this agreement is a binding
contract called an option.
Example- Drew was offered a building in
downtown Boston to use for his new business.
The cost of the building was $200,000. Drew
gave the current owner $5,000 to keep the offer
to him open for 90 days so he can make sure
he could get the funding. Drew and the current
landlord now have a contract to keep the offer
open for 60 days to only Drew.
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