91.6k views
3 votes
Martin offered to buy a property for $200 000, "offer to remain open until 5:00 p.m. on Thursday, January 21." Which one of the following situations will not cause the offer to end?

A) a counter-offer from the offeree
B) death of the offeror
C) insanity of the offeror before the offer is accepted
D) Martin sells the property to another party before the expiration of the period stipulated and before hearing from the offeree
E) the offeree has not accepted and the stipulated time has expired

1 Answer

2 votes

Final answer:

The offer made by Martin would not end in the situation where 'the offeree has not accepted and the stipulated time has expired' (E), as the offer simply lapses naturally when the time expires.

Step-by-step explanation:

In the context of contract law, an offer is a clear proposal made by an offeror (the person who makes the offer) that, upon acceptance by the offeree (the person to whom the offer is made), creates a legally binding contract. Situation E, where the 'offeree has not accepted and the stipulated time has expired' would not cause the offer to end because the offer naturally lapses after the specified time has passed anyway, so no action or event causes it to end; it simply expires on its own. Conversely, situations A, B, C, and D do involve actions or events that would terminate the offer. A counter-offer (A) is effectively a rejection of the original offer and the presentation of a new offer; hence, the original offer cannot be accepted thereon. The death (B) or insanity (C) of the offeror would generally terminate the offer unless the offeree has a legally binding option contract that keeps the offer open. If the offeror sells the property to someone else (D) within the offer period without informing the offeree, this could also end the offer as it indicates revocation by conduct.

User Wjhguitarman
by
7.9k points