Termination by Operation of Law Flashcards
1
Q
Death or Insanity of Parties
A
If either party dies or is adjudicated insane prior to acceptance, the offer is terminated
Death or insanity doesn’t need to be communicated to the other party
Offer will not terminate in this fashion if rules limiting an offeror’s power to terminate are applicable (option contract)
2
Q
Destruction of Subject Matter
A
Destruction of the subject matter terminates the offeree’s power of acceptance
Ex: real estate burned down
Ex: art damaged
Ex: vehicle destroyed
3
Q
Supervening Legal Prohibition of Proposed Contract
A
If subject matter of proposed contract becomes illegal, the offer will terminate
