Contracts and Sales Multistate Bar Practice Exam

Which of the following is a limitation on the revocation of an offer?

1. Revocation can occur anytime prior to acceptance

2. It is only valid if supported by consideration

3. It must be communicated verbally

4. Revocation is ineffective if the offeror is unaware of the acceptance

The correct answer is: It is only valid if supported by consideration

To understand why having a valid consideration is a limitation on the revocation of an offer, it is essential to recognize the relationship between an offer, acceptance, and the associated consideration. In contract law, consideration refers to something of value that is exchanged between the parties involved in the agreement. When an offer is made, it can generally be revoked before it is accepted. However, once the offer is operational and has established a binding agreement due to acceptance combined with consideration, revocation is no longer permissible unless certain conditions apply. If consideration has already been established, the offer cannot simply be revoked without violating the contractual obligations, as it would leave the offeree without the promised benefit that was assured by the offeror's initial conditions. In this context, consideration holds a significant role in ensuring that the offer remains enforceable. Although revocation can happen before acceptance under normal circumstances, if the offer has been reinforced with an exchange of consideration, offering security to both parties, the ability of the offeror to revoke diminishes, thereby creating a limitation on such revocation. The other options do not accurately address the core concepts of offer revocation and limitations. For instance, while offers can be revoked anytime before acceptance, this does not pertain to their enforce