Which events terminate an offer?

• A. Time lapse revocation, death or insanity of offeree, intervening illegality, rejection or counteroffer, time lapse (reasonable or specified)
• B. Acceptance and performance
• C. Advertisements and invitations to deal
• D. Speech restrictions and disclaimers

Answer: (A)

An offer can be terminated by events that prevent acceptance or make performance impossible. The best list of termination events includes time limits, revocation, offeree death or loss of capacity, intervening illegality, and rejection or a counteroffer. If the offer specifies a time limit or a reasonable time passes without acceptance, the offer lapses. The offer can be revoked by the offeror at any time before acceptance. If the offeree dies or becomes insane before accepting, the offer ends (similarly, death of the offeror would also terminate it). If what is proposed becomes illegal before acceptance, the offer is terminated by illegality. Finally, a rejection or counteroffer ends the original offer because it destroys the offer's ability to be accepted as stated.

Advertisements and invitations to deal are not offers in themselves, so they don’t terminate an offer. Acceptance and performance typically bring about contract formation rather than simply terminating an outstanding offer, and speech restrictions or disclaimers don’t terminate an offer.