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 Offeree 7. Destruction of the Specific Subject Matter 1. #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 open. 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. 1. 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.