What does Revocation mean in contract terms?

What does Revocation mean in contract terms?

• A. Accepting an offer
• B. Creating a new contract
• C. Completing a contract
• D. Withdrawing an offer before it is accepted

Answer: (D)

Revocation means withdrawing an offer before it is accepted. It stops the chance to form a contract on those terms because the offer is no longer available once the offeror pulls it back, and this withdrawal must usually be communicated to the other party. If the offeree has already accepted, the contract is formed and cannot be revoked. Think of it as the offeror saying, “I’m not willing to sell under these terms anymore,” before any agreement is reached. Accepting an offer would be forming the contract, creating a new contract is the act of formation, and completing a contract is about performing the obligations—none of those describe revoking an offer.

Revocation means withdrawing an offer before it is accepted. It stops the chance to form a contract on those terms because the offer is no longer available once the offeror pulls it back, and this withdrawal must usually be communicated to the other party. If the offeree has already accepted, the contract is formed and cannot be revoked.

Think of it as the offeror saying, “I’m not willing to sell under these terms anymore,” before any agreement is reached. Accepting an offer would be forming the contract, creating a new contract is the act of formation, and completing a contract is about performing the obligations—none of those describe revoking an offer.