New York Real Estate Salesperson ExaminationContractsMedium
A buyer submits an offer to purchase a property, specifying that the offer will remain open for 48 hours. Twenty-four hours later, before the seller has responded, the buyer finds a more suitable property and decides to withdraw their offer. Which of the following statements is true regarding the buyer's ability to withdraw the offer?
- AThe buyer can withdraw the offer at any time before acceptance, even if a time limit was specified.
- BThe buyer cannot withdraw the offer because it was explicitly stated to remain open for 48 hours.
- CThe buyer must obtain the seller's permission to withdraw the offer before the 48-hour period expires.
- DThe buyer can only withdraw the offer if the seller has committed a breach of contract.
Show answer & explanationAnswer & explanation
Correct answer: A. The buyer can withdraw the offer at any time before acceptance, even if a time limit was specified.
An offeror has the right to revoke their offer at any time before it has been accepted by the offeree, regardless of whether a time limit for acceptance was specified, unless consideration was given to keep the offer open (e.g., an option contract).
Why the other options are wrong
- B. A specified time limit for an offer does not prevent the offeror from revoking it prior to acceptance.
- C. The offeror does not need the offeree's permission to withdraw an offer before it has been accepted.
- D. The ability to withdraw an offer before acceptance is not contingent on a breach of contract by the offeree.
Revocation of Offer
The act of an offeror withdrawing their offer before it has been accepted by the offeree.
- Can occur anytime before acceptance.
- Must be communicated to the offeree.
- Does not require the offeree's consent.
Memory trick: Offer's open door can close before a handshakes.