ContractsIntermediateCalifornia Exam

An offer is considered revoked when:

AThe seller signs the listing agreement, consistent with common contract law principles
BThe offeror communicates revocation to the offeree before acceptanceCorrect
CA third party makes a better offer, per standard contingency and disclosure practice
D24 hours have passed without acceptance, under standard California purchase contract terms

Why The offeror communicates revocation to the offeree before acceptance Is Correct

Answer B: The offeror communicates revocation to the offeree before acceptance

An offeror may revoke an offer any time before acceptance, provided the revocation is communicated to the offeree. Once the offer is accepted and communicated back, a binding contract exists.

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.

Key Contracts Terms in This Question

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