Written by attorneys · grounded in primary & secondary sources — see below
A person to whom an offer is directed and who thereby acquires a power of acceptance. That power ends upon rejection, counter-offer, revocation received by the offeree, or lapse of time.
Otis Olsen offered to sell his warehouse to Owen Ortega for $400,000. Ortega replied that he would pay only $350,000. Olsen then sold the property to a third party. Ortega's rejection terminated his power to accept the original terms.
Orion Technologies, a merchant, sent Omega Energy a signed record promising to hold open an offer to sell solar panels for thirty days. Omega relied on the assurance and did not seek other suppliers. Orion could not revoke the offer during the stated period.
Octavia Okonkwo offered to buy Orbit Communications' equipment for $50,000. Orbit replied with an offer to sell the same equipment for $55,000. Orbit's response constituted a counter-offer proposing a substituted bargain.
Select any source to read its text and confirm it supports the definition.
Oswald Orozco offered to lease space to Oceanview Properties at $8,000 per month. Oceanview countered at $7,000 per month. Oceanview's counter-offer ended its power to accept the original lease terms.
Oscar Ortiz offered to sell land to Odilia Okamura. Ortiz later sent a message stating he would not sell. Okamura received the message before attempting acceptance. Receipt of the revocation terminated her power of acceptance.
Omega Energy offered to pay Orion Technologies a bonus if Orion began installing turbines by a stated date. Orion started the work. The beginning of performance created an option contract that prevented revocation.
Rejection or a counter-offer by the offeree ends the power. Receipt of a revocation from the offeror also terminates the power. Lapse of a reasonable time produces the same result.
A counter-offer proposes a substituted bargain on the same subject matter. A mere inquiry does not propose new terms and therefore leaves the original power of acceptance intact.
When an offer invites acceptance solely by performance, the offeree's tender or beginning of that performance forms an option contract. The offeror then loses the power to revoke until the offeree has a reasonable time to complete the invited performance.
No. Under UCC § 2-205 a signed record by a merchant that gives assurance the offer will be held open is irrevocable for the stated time or a reasonable time up to three months even without consideration.
…were actually purchased. In 1970, two years after the offering, respondent, a former user of the stamp service and therefore an offeree of the 1968 offering, filed this suit in the United States District Court for the Central District of California. Defendants below and petitioners here are Old and New Blue Chip, eight of…