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An offer to purchase real estate is terminated by all of the following EXCEPT:

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Question & Answer

Review the question and all answer choices

A

Death of the offeror

Death of the offeror terminates an offer because agency and contract law hold that an offer is a personal privilege that cannot survive the offeror's death β€” there is no longer a legal person capable of being bound by the contract if the offeree attempts to accept.

B

Counteroffer by the offeree

A counteroffer terminates the original offer under the mirror image rule, because the offeree's proposal of different terms constitutes both a rejection of the original offer and a new offer, extinguishing the offeree's power to accept the original terms.

C

Inquiry about terms by the offeree

Correct Answer
D

Rejection by the offeree

An explicit rejection by the offeree terminates the offer because once the offeree communicates an unwillingness to accept the terms, the offeror is entitled to rely on that rejection and act accordingly β€” allowing the offeree to later accept after rejecting would create unacceptable uncertainty for offerors.

Why is this correct?

An inquiry about terms β€” such as asking 'Would you consider a lower price?' or 'Is the closing date flexible?' β€” does not constitute a rejection or counteroffer and therefore does not terminate the original offer, leaving it open for acceptance. This principle, recognized in contract law cases including Stevenson, Jacques & Co. v. McLean (1880), distinguishes between a mere request for information and a definitive rejection or new proposal. Because the inquiry does not manifest an intent to reject the offer or propose different terms, the offeree retains the power to accept the original offer even after making the inquiry.

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