Destroying an Offer under Contracts
🔹 What is an "Offer"?
An offer is a clear proposal made by one party (the offeror) to another (the offeree) to enter into a contract, with definite terms and the intention to be bound once accepted.
But an offer is not permanent — it can be destroyed in various ways before it is accepted.
🔻 Ways an Offer Can Be Destroyed
There are several ways an offer can be destroyed, meaning it is no longer valid and cannot be accepted to form a contract:
1. Revocation by the Offeror
The offeror withdraws the offer before it is accepted.
It must be communicated to the offeree before acceptance.
Once revoked, the offeree cannot accept the offer — it's dead.
Example:
A offers to sell a car to B. Before B accepts, A tells B the offer is withdrawn. The offer is destroyed.
2. Rejection by the Offeree
If the offeree says no to the offer, it’s destroyed.
A rejected offer cannot be revived unless the offeror makes the offer again.
Example:
A offers to sell a laptop to B for $500. B says, “No, thank you.” The offer is destroyed.
3. Counteroffer
A counteroffer is when the offeree responds with different terms instead of accepting.
This acts as a rejection of the original offer and creates a new offer.
Example:
A offers to sell a book for $20. B says, “I’ll take it for $15.” B has destroyed the original offer and made a new one.
4. Lapse of Time
If the offer states a time limit for acceptance, it expires after that time.
If no time is stated, the offer lasts a “reasonable time,” depending on the context.
After that time, the offer is destroyed.
Example:
A offers to sell a phone and says, “You have until Friday to decide.” If Friday passes with no response, the offer is destroyed.
5. Death or Incapacity
If either the offeror or offeree dies or becomes legally incapable before acceptance, the offer is destroyed.
A contract cannot form if the person who made or received the offer is no longer able to participate.
Example:
A offers to paint B’s house. A dies before B accepts. The offer is destroyed.
6. Destruction of Subject Matter
If the subject of the offer is destroyed before acceptance, the offer is also destroyed.
No one can accept an offer for something that no longer exists.
Example:
A offers to sell a car. Before B accepts, the car is destroyed in a fire. The offer is automatically destroyed.
7. Illegality
If the action proposed in the offer becomes illegal before acceptance, the offer is destroyed.
Example:
A offers to sell fireworks to B. Before B accepts, a new law bans fireworks. The offer is destroyed.
🧠 Summary Table
Method | Who Destroys It | What Happens |
---|---|---|
Revocation | Offeror | Offer withdrawn before acceptance |
Rejection | Offeree | Offeree says no; offer ends |
Counteroffer | Offeree | Replaces original offer |
Lapse of Time | Time passes | Offer expires |
Death/Incapacity | Either party | Offer ends automatically |
Destruction of Subject | N/A | Offer becomes impossible |
Illegality | External change | Offer is void due to law |
✅ Key Takeaway
An offer doesn’t last forever. It can be destroyed in several ways, and once destroyed, it cannot be accepted to form a valid contract. Understanding how offers are destroyed is critical for knowing when and how a contract can be legally formed.
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