Termination

Making an offer gives the offeree the power to create a bargain by accepting the offer. How long does that power last? The answer depends on what happens after the offer is made.

We begin with this rule: An offer terminates if the offeree rejects the offer. See Restatement (Second) Contracts ยง38(1). (There are exceptions discussed in the next tutorial.)

If this were not the rule, it would be risky for an offeror to make a new offer to someone else once the original offeree rejected the offer. The offeror would run the risk that the original offeree would change his or her mind and accept the offer.

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