Termination by Offeror

Question 1

Revocation

Answer 1

Offeror can revoke an offer at any time before the offer is accepted

Question 2

Direct Revocation

Answer 2

“I revoke my offer”

Question 3

Indirect Revocation

Answer 3

Information from reliable third party that offeror is no longer willing/able to contract on the offered terms

Ex: if offeror sells the thing to someone else, and you’re aware of it

Question 4

Option Contracts

Answer 4

IRREVOCABLE OFFER

A promise to hold offer open for a certain period of time PLUS consideration by offeree

Question 5

Merchant’s Firm Offer

Answer 5

IRREVOCABLE OFFER

When merchants make a promise in a signed writing to keep offer open, it cannot be terminated for the time stated, OR if no time, for reasonable time BUT no longer than 3 months

NO CONSIDERATION NEEDED

Question 6

Detrimental Reliance

Answer 6

Offeror makes a promise in the offer and should expect the offeree will rely on that offer to his detriment

Question 7

Beginning Performance Under Unilateral Offer

Answer 7

Offer is accepted only by performance, and the offeree begins performance on that offer

Still revocable if person is preparing to perform