Business Law II Professor Pamela Gershuny Fall 2000

B USINESS L AW II Methods: Termination of an Offer

By the Acts of the Parties B USINESS L AW II Methods: Termination of an Offer 1.An offer can be revoked at any time without liability unless the offer is irrevocable. 2.Option contracts, merchants’ firm offers, and, in some circumstances, the promissory estoppel theory render offers irrevocable. Revocation: (3)

By the Acts of the Parties B USINESS L AW II Methods: Termination of an Offer 3.Except for public offers, revocation is not effective until received by the offeree or the offeree’s authorized agent. Revocation: (3)

By the Acts of the Parties B USINESS L AW II Methods: Termination of an Offer

By the Acts of the Parties B USINESS L AW II Methods: Termination of an Offer Rejection: (2)

By the Acts of the Parties B USINESS L AW II Methods: Termination of an Offer 1.Rejection of an offer is accomplished by words or actions that demonstrate a clear intent not to accept the offer or consider the offer further. Inquiries about an offer do not constitute a rejection. 2.A rejection is not effective until received by the offeror or an authorized agent of the offeror. Rejection: (2)

By the Acts of the Parties B USINESS L AW II Methods: Termination of an Offer A counteroffer is a rejection of the original offer and the making of a new offer. Inquiries are not rejections. Counteroffer

By Operation of Law B USINESS L AW II Methods: Termination of an Offer 1.If a time period for acceptance is stated in the offer, the offer ends at the stated time. 2.If no time period for acceptance is stated, the offer terminates at the end of a reasonable period. Lapse of Time (2)

By Operation of Law B USINESS L AW II Methods: Termination of an Offer Destruction of the specific subject matter of the offer terminates the offer. Destruction

By Operation of Law B USINESS L AW II Methods: Termination of an Offer Death of incompetence of either the offeror or the offeree terminates an offer, unless the offer is irrevocable. Death or Incompetence

By Operation of Law B USINESS L AW II Methods: Termination of an Offer Supervening illegality terminates an offer. Illegality

End of Methods by Which an Offer Can Be Terminated