California Real Estate SalespersonContractsMedium
A property owner mails a written offer to sell her lot to a buyer. Before the buyer receives or accepts the offer, the owner suddenly dies. What is the legal effect on the offer?
- AThe offer becomes an option contract binding on the heirs
- BThe offer automatically terminates upon the offeror's death
- CThe offer transfers to the deceased owner's estate for acceptance
- DThe offer remains valid and can be accepted by the buyer
Show answer & explanationAnswer & explanation
Correct answer: B. The offer automatically terminates upon the offeror's death
An offer is automatically terminated by the death or incapacity of the offeror before acceptance, regardless of whether the offeree has been notified. There must be a "meeting of the minds" between living parties for a contract to form.
Why the other options are wrong
- A. Nothing converts a simple offer into an option merely due to death.
- C. The estate does not inherit the power to have the offer accepted.
- D. An offer cannot survive the death of the offeror before acceptance.
Termination of Offer by Death
An offer automatically terminates upon the death or incapacity of either party before acceptance is communicated.
- Applies even if offeree has no knowledge of death
- Distinguished from an option contract, which involves consideration
- No contract can form without both parties being capable at acceptance
Memory trick: Dead offeror, dead offer