Which statement best describes termination of an offer by lapse of time?

Which statement best describes termination of an offer by lapse of time?

• A. An offer terminates after a reasonable time if no duration is specified
• B. An offer can only terminate by revocation
• C. An offer terminates automatically after a fixed period specified in the offer
• D. An offer terminates only when the offeree executes a contract

Answer: (A)

Lapse of time ends an offer when no duration is specified. If the offer doesn’t state a time limit, the offeror is presumed to keep it open only for a reasonable period under the circumstances. What counts as reasonable depends on factors like the nature of the deal, how urgent it is, market conditions, and the parties’ prior dealings. Once that reasonable period passes, the offer terminates and can no longer be accepted, unless the offer is revived or extended by the offeror before acceptance. This contrasts with revocation, which ends the offer before it’s accepted, or with an offer that explicitly stays open for a fixed period, which would govern instead of the general reasonable-time rule.

Lapse of time ends an offer when no duration is specified. If the offer doesn’t state a time limit, the offeror is presumed to keep it open only for a reasonable period under the circumstances. What counts as reasonable depends on factors like the nature of the deal, how urgent it is, market conditions, and the parties’ prior dealings. Once that reasonable period passes, the offer terminates and can no longer be accepted, unless the offer is revived or extended by the offeror before acceptance. This contrasts with revocation, which ends the offer before it’s accepted, or with an offer that explicitly stays open for a fixed period, which would govern instead of the general reasonable-time rule.