Termination by Offeror

Question 1

Revocation

Answer 1

Revocation terminates the offeree’s power of acceptance if it is communicated to her before she accepts

Question 2

Revocation by Direct Communication

Answer 2

Revocation directly communicated to the offeree by the offeror terminates the offer

Question 3

Revocation by Publication

Answer 3

Offers made by publication may be terminated by publication of revocation through comparable means

Ex: an offer published in NYT may be revoked by publication in NYT - it may not be revoked by publication in Reader’s Digest or by a TV spot

Question 4

Revocation by Indirect Communication

Answer 4

Offer may be effectively terminated if offeree indirectly receives:

1. Correct information
2. From a reliable source
3. Of acts of the offeror that would indicate to a reasonable person that the offeror no longer wishes to make the offer

Ex; offeree, before attempting to accept offeror’s offer to sell greenacre, was informed by a reliable third party that the offeror had sold greenacre to another

Question 5

Effectiveness

Answer 5

Revocation is generally effective when received by offeree
- need not be read by recipient

When revocation is by publication, it is effective when published

Question 6

UCC Effectiveness

Answer 6

1. Comes to his attention
2. Delivered at a place of business through which the contract was made or another location held out by that person as the place for receipt of such communications

Organization receives a communication at the time it is brought (or should have been brought) to the attention of the individual conducting the transaction

Question 7

Timely Acceptance Under Option Contract

Answer 7

Offer must be accepted within time specified or, if no time specified, within a reasonable time

Offer terminates when option expires

Question 8

Detrimental Reliance

Answer 8

Where the offeror could reasonably expect that the offeree would rely to her detriment on the offer, and the offeree does so rely, the offer will be held irrevocable as an option contract for a reasonable length of time

Question 9

Beginning Performance in Unilateral Contract

Answer 9

Offer for unilateral contact becomes irrevocable once performance has begun

Offeree is given a reasonable time to complete performance during which time the offeror is irrevocable

Offeree is not bound to complete performance

Question 10

Preparations to Perform

Answer 10

Offeror can revoke if offeree is only preparing to perform

Substantial preparations may constitute detrimental reliance sufficient to make offeror’s promise binding to the extent of the detrimental reliance

Question 11

Beginning Performance in Bilateral Contract

Answer 11

Bilateral contract may be formed upon the start of performance by the offeree
- once offeree begins performance, the contract is complete and revocation becomes impossible