Contracts and Sales Multistate Bar Practice Exam

What is a continuing offer?

1. An offer that can be revoked at any time

2. An offer made to multiple parties

3. An offer to form a series of contracts over time

4. An offer that has no expiration date

The correct answer is: An offer to form a series of contracts over time

A continuing offer refers to an offer made with the intention to create a series of contracts over time rather than a single transaction. This type of offer is typically used in situations where one party intends to supply goods or services on a recurring basis. For example, a supplier might issue a continuing offer to a retailer to provide a specific quantity of goods on a regular schedule (e.g., weekly or monthly deliveries). The essence of a continuing offer lies in its nature as an ongoing relationship, where acceptance can occur multiple times over a period, allowing for a convenient and systematic framework for transactions. This contrasts with one-time offers that conclude once accepted. Although the idea of revocation and expiration can apply to offers in general, these characteristics do not define a continuing offer. Thus, the notion of an offer to multiple parties or lacking any expiration date does not inherently capture the unique aspect of a continuing offer, which is its design for repeated or ongoing contracts.