The Termination of an Offeree’s Power of Acceptance (2024)

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Melvin A. Eisenberg

Melvin A. Eisenberg

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457–484

  • Published:

    October 2018

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Eisenberg, Melvin A., 'The Termination of an Offeree’s Power of Acceptance', Foundational Principles of Contract Law (New York, 2018; online edn, Oxford Academic, 18 Oct. 2018), https://doi.org/10.1093/oso/9780199731404.003.0033, accessed 18 Sept. 2024.

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Abstract

An offer vests in the offeree the power to conclude a bargain, that is, the power of acceptance. Much of the law of offer and acceptance concerns the question: What kinds of events terminate that power? One such event is lapse of the offer. Another is revocation. Normally an offeror may revoke the offer at any time before acceptance. However, often an offeror will promise to hold the offer open for a given period of time. If the offeree gives consideration for such a promise the promise is referred to as an option and is enforceable. If the offeree does not give consideration for such a promise the offer is referred to as a firm offer and normally is revocable unless relied upon. This rule is unjustified. If an offeror promises to hold an offer she does so to further her own interests. Failure to enforce such promises is therefore against the interests of offerors as a class.

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