How might an offer be terminated?

How might an offer be terminated?

• A. By acceptance of the offer.
• B. By rejection, counter-offer, revocation, lapse of time, failure of condition precedent, death.
• C. By negotiation.
• D. By payment of consideration.

Answer: (B)

An offer can be terminated before it is accepted by several events that stop it from becoming a contract. If the offeree refuses, the offer is terminated through rejection. If the offeree proposes a different deal, a counter-offer terminates the original offer and creates a new offer. The offer can also be ended if the offeror revokes it before acceptance. Time plays a role too: if the offer specifies a time or expires, or if no time is stated and a reasonable period passes, the offer lapses. If a condition precedent to the offer’s performance fails, the offer cannot be accepted. Finally, the offer is terminated on the death of either party, since a contract cannot be formed when one party is dead. These are the standard ways an offer ceases to be capable of acceptance. By contrast, acceptance ends the offer by forming a contract; negotiation is merely discussing terms, and payment of consideration relates to performance, not termination of the offer.

An offer can be terminated before it is accepted by several events that stop it from becoming a contract. If the offeree refuses, the offer is terminated through rejection. If the offeree proposes a different deal, a counter-offer terminates the original offer and creates a new offer. The offer can also be ended if the offeror revokes it before acceptance. Time plays a role too: if the offer specifies a time or expires, or if no time is stated and a reasonable period passes, the offer lapses. If a condition precedent to the offer’s performance fails, the offer cannot be accepted. Finally, the offer is terminated on the death of either party, since a contract cannot be formed when one party is dead. These are the standard ways an offer ceases to be capable of acceptance. By contrast, acceptance ends the offer by forming a contract; negotiation is merely discussing terms, and payment of consideration relates to performance, not termination of the offer.