Contract Termination
Print this article
Font Size
Termination by the Offeror
View ArticleView Article Comments
An offer can be terminated by an act of the person who made the offer (i.e. the offeror). In other words, the offeror can revoke the offer that he or she made to another person (i.e. the offeree). Termination by revocation can occur in three situations.

First, termination can occur if the offeror directly communicates that he or she is revoking the offer to the offeree. Second, termination can occur if the offeror acts in a manner that demonstrates his or her aversion to maintain the offer, and the offeree is given accurate information of this from a reliable source. Third, if the offer was communicated through some form of publication, the offer can be revoked through the use of some similar means of publication. Under each of these situations, the revocation of the offer goes into effect when it is received by the offeree (or when it is published).

It is important to note that there are certain limitations on the offeror’s power to revoke his or her offer. These limitations include option contracts, firm offers under the Uniform Commercial Code, detrimental reliance, and unilateral contracts.

Let’s look at each one of these concepts in a little more detail on the next page.