Termination by Offeree

Question 1

Express Rejection

Answer 1

Statement by offeree that she does not intent to accept offer

Question 2

Counteroffer

Answer 2

Made by offeree to offeror that contains same subject matter as original offer but differs in its terms

Rejection + new offer

Ex: not at that price, but I’ll take it at $200
Ex: i’ll take it at that price, but only if it is also equipped with air conditioning - conditional acceptance

Question 3

Mere Inquiry

Answer 3

Inquiry will not terminate the offer when it is consistent with he idea that the offeree is still keeping the original proposal under consideration

Whether a reasonable person would believe that the original offer had been rejected

Ex: would you consider lowering your price by $5,000?

Question 4

Effectiveness of Rejection

Answer 4

Rejection is effective when received by offeror

Question 5

Revival of Offer

Answer 5

If an offer is rejected, the offeror may restate the same offer and create a new power of acceptance

Question 6

Rejection of Option

Answer 6

Rejection or counteroffer to an option does not constitute a termination of the offer

Offeree is still free to accept the original offer within the option period unless the offeror has detrimentally relied on the offeree’s rejection

Question 7

Must Accept within Specified or Reasonable Time

Answer 7

If offeree doesn’t accept offer within time period specified or reasonable time, she will have allowed the offer to terminate

Question 8

Offer Is Received by Offeree

Answer 8

If offer expires within a particular time period, the period commences when the offer is received by the offeree

If offer is delayed in transmission and this fact is or should have been apparent to the offeree, the offer terminates at the time wit would have expired had there been no delay