Rejection and Revocation Flashcards
What happens to an offer after the stated time period?
An offer lapses after the time period stated.
What occurs if no time period is stated for an offer?
The offer lapses after a reasonable amount of time has passed.
How does the nature of goods affect the reasonable time for an offer to lapse?
For goods that fluctuate in price, the reasonable amount of time is typically shorter.
Can an offer be revoked?
An offer is freely revocable at any time prior to acceptance.
When is an offeree’s power of acceptance terminated?
An offeree’s power of acceptance is terminated when the offeree receives from the offeror a manifestation of an intention not to enter into the proposed contract.
What constitutes indirect communication of revocation?
An offeree’s power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into the proposed contract and the offeree acquires reliable information to that effect.