When can an offer be revoked in contract law?
Asked by: Jefferey Monahan | Last update: January 27, 2026Score: 4.6/5 (40 votes)
In contract law, an offer can generally be revoked by the offeror at any time before the offeree accepts it, even if a time limit was set, as long as the offeree receives clear notice of the revocation, which can come indirectly. However, offers become irrevocable (option contracts) if the offeree pays for the option, starts performing in unilateral contracts, or reasonably relies on the offer. Revocation terminates the power of acceptance, requiring clear communication or action by the offeror showing intent not to be bound.
When can a contract offer be revoked?
An offer can be revoked anytime before acceptance, but the revocation must meet specific legal criteria to be valid. The general principle is that revocation must be effectively communicated to the offeree for it to take effect. This communication must occur before the offeree accepts the offer.
In what circumstances may an offer be revoked?
Revocation can occur at any time before the offer is accepted. The revocation must be clear and unambiguous. The offeree must be aware of the revocation for it to take effect.
What are the 4 ways an offer can be terminated?
There are four ways for the termination of an offer to occur, which means that there can be no acceptance and no contract: lapse, revocation, rejection, and death or incapacity.
In which situation can an offer not be withdrawn?
A unilateral offer cannot be withdrawn if the offeree is in the act of performing, since acceptance and performing are one and the same thing. An offer may come to an end because it has been accepted, in which case a contract has been formed.
Understanding Revocation of Offers in Contract Law | DocPro Channel
What are the rules of revocation of an offer?
Under the Indian Contract Act, 1872, an offer can be revoked through several modes such as prior communication, lapse of time, failure of a condition precedent or the death or insanity of the offeror. However, revocation must always be clearly communicated before acceptance is complete.
What are the six ways an offer can be terminated?
Termination of the offeree's power of acceptance can result from any of the following six causes:
- expiration or lapse of the offer,
- rejection by the offeree,
- a counteroffer by the offeree,
- a qualified or conditional acceptance by the offeree,
- a valid revocation of the offer by the offeror, and.
- by operation of law.
Can you revoke an offer after acceptance?
Yes, you can. However, it's important to make sure that this is something you really want to do and, if you signed a contract, be clear on the terms of leaving that job so that you're not in breach of contract.
What is the revocation rule in contract law?
Revocation is the manifestation of the intent not to enter into the contract proposed by an offer. A “manifestation” of intent can be oral or written or, as discussed shortly, even indirectly. Unless an offer is specifically made irrevocable, it can be revoked at anytime prior to acceptance.
In what situations is an offer terminated?
In conclusion, offer can be terminated by Revocation, Rejection, Lapse of time, Conditional Offer, Operation of law, Death, Acceptance and Illegality.
What kind of offer cannot be revoked?
Irrevocable Offers
One type of offer that is irrevocable (cannot be revoked) is the option contract. An option contract occurs when an offeree has provided consideration (usually a payment) to the offeror in exchange for a promise to keep the offer open for a specified period.
Can you revoke an offer at any time?
Up until the job offer is accepted by the candidate, the employment offer can be withdrawn at any time. If the offer was conditional, you can also rescind a job offer at any time if it's found that the conditions set out in the offer haven't been met.
Can a buyer back out after an offer is accepted?
Yes, a buyer can back out of an accepted home offer, but it's much easier and often penalty-free if done within the timeframes and conditions of contingency clauses (like inspection, appraisal, or financing) in the contract; otherwise, they risk losing their earnest money deposit and potentially facing legal action for breach of contract. The key is using contingencies to create legitimate reasons to exit the legally binding agreement.
What are 6 things that void a contract?
We'll cover these terms in more detail later.
- Understanding Void Contracts. ...
- Uncertainty or Ambiguity. ...
- Lack of Legal Capacity. ...
- Incomplete Terms. ...
- Misrepresentation or Fraud. ...
- Common Mistake. ...
- Duress or Undue Influence. ...
- Public Policy or Illegal Activity.
What are the three types of revocation?
Types of Revocation
Intentional revocation. Revocation by operation of law. Mutual cancellation by both parties. Revoking an offer before it is accepted.
On what grounds can a contract be rescinded?
It includes the effect of rescission, the main grounds for rescinding a contract (misrepresentation, mistake, Undue influence, duress, non-disclosure, fiduciary misdealing and bribery) and the main bars to seeking rescission as a remedy of affirmation, intervention of third party rights and impossibility of restitution ...
What is Section 37 of the contract Act?
The parties to a contract must either perform, or offer to perform, their respective promises, unless such performance is dispensed with or excused under the provisions of this Act, or of any other law.
Can acceptance of an offer be revoked?
An acceptance cannot be revoked except by a revocation which is communicated to the offeror before or at the same time as the acceptance.
What are the rules relating to revocation of offer?
According to section 5 of the Indian contract Act "A proposal may be revoked at any time before the communication of its acceptance as against the proposer". 1. Revocation by communication of notice: an offer may be revoked by the offeror by giving notice of the revocation to the other party before it is accepted.
Can an offer be rescinded after negotiation?
When an offer does get yanked because of a negotiation, the explanation is usually one of the following: 1. If they truly pulled the offer because you negotiated and nothing else was at play, that's so outside the realm of normal business expectations that it indicates they don't play by professional norms in general.
How soon can you cancel a contract after signing it?
Cooling-off Rule is a rule that allows you to cancel a contract within a few days (usually three days) after signing it. As explained by the Federal Trade Commission (FTC), the federal cooling-off rules gives the consumer three days to cancel certain sales for a full refund.
Can an offer be withdrawn after acceptance?
An offer of employment without any conditions attached. Once accepted, it creates a binding contract. A legal violation that occurs when one party does not fulfil their contractual obligations, such as withdrawing an unconditional job offer.
What are the grounds on which the offer could be revoked?
An offer may be terminated through lapse of time, the death of the offeror or offeree, the failure of some condition or contingency, by rejection (or counter-offer), or by communication of a revocation of the offer. Meanwhile, an offer may be revoked any time prior to its acceptance.
What are the four major ways that a contract can be terminated?
- Termination of contract for breach.
- Termination of contract by performance.
- Termination of contract by agreement.
- Termination of contract by frustration or force majeure.
How can a contract offer be terminated?
Offers can be terminated by revocation, rejection, lapse of time, death/incapacity, or illegality. Irrevocable offers, such as option contracts and reliance-based offers, may survive these terminations. Communication of revocation, whether direct or indirect, plays a key legal role.