TERMINATION OF AN OFFER

Question 1

REVOCATION

Answer 1

REVOCATION of an offer: When the offeror “takes it back” before the offeree accepts

Question 2

REJECTION

Answer 2

REJECTION of an offer: If the offeree clearly indicates he does Not want to take offer.

Question 3

COUNTEROFFER

Answer 3

COUNTEROFFER: When the party responds to an offer with a new and different
proposal. Then the counteroffer is a rejection

Question 4

EXPIRATION

Answer 4

4. EXPIRATION of an offer: When the offer specifies a time limit for acceptance, that
   period is binding BUT if no time limit specified, then the offeree has a reasonable period
   in which to accept.

Question 5

TERMINATION BY OPERATION OF LAW

Answer 5

TERMINATION BY OPERATION OF LAW upon the death of a party: The death of the
offeror prior to acceptance terminates the offer. But note – The death of a party to a
contract does not generally terminate the contract. The estate of a deceased person will
be liable on a contract made by the person before death.