Illinois Leasing Agent Practice Exam

Under which condition can an offer be terminated?

1. If it is accepted

2. If it is revoked prior to acceptance

3. If it is modified after acceptance

4. If the buyer has not responded

The correct answer is: If it is revoked prior to acceptance

An offer can be terminated when it is revoked prior to acceptance. This means that the person who made the offer has the right to withdraw it before the other party has accepted it. The legal principle here is that until an offer is accepted, the offeror maintains the ability to convey their intention not to move forward with the offer. This aspect of contract law emphasizes the importance of the timing of acceptance and revocation and ensures that both parties understand the status of the offer. In this context, once the offer has been accepted, a binding agreement is formed, making the first choice incorrect. Modifying an offer after acceptance introduces complexities that typically indicate the formation of a new offer, therefore invalidating the previous one, which does not apply here since acceptance is a critical point for termination. Finally, the lack of response from the buyer does not constitute a termination of the offer; it merely indicates that the buyer has not yet acted upon it. Thus, revoking the offer prior to its acceptance is the clear condition under which the offer can lawfully be terminated.