Final answer:
Derek can terminate his offer for Mic to study by directly communicating to Mic the retraction due to the threat. As long as Mic has not accepted the offer, Derek is free to withdraw it. Clear and timely communication is necessary to effectively terminate the offer.
Step-by-step explanation:
When Derek offers to help Mic study for his business law final exam, he extends an offer. In contract law, an offer is a manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it. If Mic threatens to fight Derek, this could be considered as a breach of peace or a hostile action that makes it reasonable for Derek to terminate his offer.
Derek can rescind his offer in a few different ways. He can directly communicate to Mic that he no longer wishes to provide his help due to the threat. Since an offer can be withdrawn before it has been accepted, and assuming Mic has not yet accepted, Derek can simply inform Mic the offer is retracted. Moreover, under certain conditions, an offer can be terminated by operation of law, which includes situations where there is a clear indication that the offeree is not willing to accept the offer, such as threatening conduct.
In any case, Derek needs to communicate the retraction of his offer in a clear and timely manner, before Mic attempts to accept it. If Mic tries to accept the offer after it has been terminated, there would be no agreement since the offer was already withdrawn.