CLEP Business Law Practice Test 2025 – Comprehensive Exam Prep

An offer can be effectively revoked by the offeror's withdrawal before the offeree has accepted it. This principle is a fundamental aspect of contract law, emphasizing that an offer is not binding until it has been accepted by the other party. The offeror has the right to change their mind as long as the offeree has not communicated their acceptance. Therefore, if the offeror decides to withdraw the offer prior to acceptance, it is considered legally effective, thereby terminating the possibility of forming a contract based on that offer.

The rationale behind this is that offers are only valid until accepted and can be changed up until they are final. This ensures that both parties engage willingly and with full awareness of their contractual obligations. Without revocation, there is a potential for misunderstandings and disputes regarding the mutual consent required for valid contracts.

In contrast, an offeree's acceptance solidifies the offer into a binding contract, thereby affirming rather than revoking the offer. Keeping the offer open for a specific time simply prolongs the time frame for acceptance without altering the ability of the offeror to withdraw it prior to that period ending. Lastly, the offeree's consideration refers to the value exchanged in a contract, which does not have the capacity to revoke an existing offer