Question

Which of the following offerors is free to revoke his offer?

An offeror of a unilateral contract where the offeree already started performance.

An offeror, who is a merchant, agreed in writing to sell goods and gave assurances that the offer would remain open.

An offeror that agreed to keep an offer open without consideration.

An offeror who promised to keep an offer open without consideration, but later changed his mind and the offeree foreseeably and reasonable relied on the offeror's promise.

Yasmin offers to landscape Bert's property for $2,000. Two days after making the offer, Yasmin changes her mind and mails Bert a letter revoking her offer. The next day, Bert, who has not received Yasmin's letter, calls Yasmin and accepts her offer. Does a contract exist?

Yes, because mail is not a proper method of revoking an offer.

No, because Yasmin can revoke her offer at any time.

No, because Yasmin mailed her revocation before Bert's acceptance.

Yes, because Bert was not notified of Yasmin's revocation at the time he accepted.

A promisee's promise not to commit a crime can never be consideration because:

the promise is not bargained for and given in exchange.

the promise is illusory.

every member of society has a duty to obey the law.

it lacks future intent.

Answer 1

1)Option (c)

An offeror that agreed to keep an offer open without consideration.

In term of option contract the offeree must provide consideration to the offeror to keep the offer open. If no such consideration is provided, then the offeror may revoke his's offer any time before the acceptance if he wants.

Other options are incorrect. Expalanations are provided as under:

a)Unilateral contracts cannot be revoked once performance begins.

b)An offer by a merchant to buy or sell goods in a signed writing which by its terms gives assurance that it will be held open is not revocable, for lack of consideration, during the time stated or if no time is stated for a reasonable time, but in no event may such period of irrevocability exceed three months..

d) If the offeree detrimentally relied on the offeror's promise to keep the offer open then the offeror has to keep the offer open for a reasonable period of time.

2) Option (d)

Yes, because Bert was not notified of Yasmin's revocation at the time he accepted.

Revocation takes effect as soon as it is known to the offeree. An offeror may revoke an offer before it has been accepted, but the revocation must be communicated to the offeree.

3)Option (c)

Every member of society has a duty to obey the law.

The performance of an act by a person who is legally bound to perform the same cannot be consideration for a contract.