ContractsIntermediateArizona Exam

An offer to purchase that includes a deadline of 'accepted by 5 PM today' and is not accepted by that time:

ARemains open until the other party responds
BLapses (expires) and is no longer validCorrect
CAutomatically becomes a binding contract
DMust be extended by the seller

Why Lapses (expires) and is no longer valid Is Correct

Answer B: Lapses (expires) and is no longer valid

An offer that specifies a deadline lapses if not accepted by that deadline. The offeror is no longer bound after the stated expiration time.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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