Which statement best describes termination of an offer?

• A. An offer cannot be revoked once communicated.
• B. An offer terminates when the offeree rejects it or makes a counteroffer.
• C. An offer remains open until performance occurs regardless.
• D. An offer terminates only after a specified time passes.

Answer: (B)

The key idea is how an offer ends when the other party’s actions show they don’t accept it. An offer is terminated when the offeree rejects it or makes a counteroffer. Rejection ends the deal as proposed, and a counteroffer is treated as a rejection plus a new offer with different terms, so the original offer can no longer be accepted. This is why that choice best describes termination.

Other statements miss important realities. An offer can be revoked by the offeror, and offers can lapse or end for other reasons (like death or destruction of subject matter), or stay open only if there’s an enforceable option contract or a specified timeframe. Saying it remains open until performance occurs is not universally true, and stating it terminates only after a specified time ignores the ways it can end earlier.