Business Law - Termination offer

Termination of offer

An offer may be terminated by rejection, lapse of time, failure to fulfill a condition precedent to acceptance, death of a party, merger and revocation.

Rejection

An offer may be rejected expressly by the offeree. A rejection is implied where the offeree make a counter offer varying the terms of the original offer.

In the case of Hyde v Wrench, the defendant agreed to sell his farm to the plaintiff for £1,000. The plaintiff made a counter offers of £950. The defendant refused. Two day later, the plaintiff wrote to the defendant that he was prepared to pay £1,000. The defendant refused and the plaintiff sued for specific performance. It was held that there was no valid binding contract between the parties. The plaintiff had rejected the original offer of £1,000 by the counter offer of £950.

On the other hand, a proposal is not rejected merely by seeking or requesting for further information. This can be referring to the case Stevenson v Mc...