Contracts

A Mississippi buyer makes an offer to purchase, which the seller accepts. The next day, before any exchange of signatures, the buyer calls to revoke the offer. The revocation is effective because:

ARevocations must always be in writing to be effective
BAn offer may be revoked any time before it has been accepted and communicated to the offeror✓ Correct
CThe buyer cannot revoke after making an offer
DOnly the seller can terminate the offer

Explanation

An offer is freely revocable by the offeror at any time before acceptance is communicated back to the offeror. Once the seller accepts and communicates the acceptance, a binding contract is formed. A revocation communicated before acceptance prevents contract formation.

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