An offer can be made in oral form, written form or conduct

An offer can be made in oral form, written form or conduct Disclaimer: This work has been submitted by a student. This is not an example of the work produced by our Law Essay Writing Service . You can view samples of our professional work here . An offer can be made in oral form, written form or conduct Question: How is an offer terminated? Please provide examples and case law in order to support your answer. Offer, Acceptance and Consideration are the three main components to form a legally binding contract. And before any contracts are being made, there must be reasonable and proper means of communication between parties. An offer is a definite and specific promise made by the offeror to an offeree of which there is an intention to be bound on specific terms if it is accepted. An offer can be made in oral form, writing form or by conduct, noted that it should not be vague but definite. In order to terminate an offer, there are five ways to do so which will be shown below: 1. Rejection There are two forms of rejection to an offer. The first form is that the offer is simply rejected by the offeree for not willing to be bound by the terms of the offer through communication, this will permanently destroy the offer. The offere e cannot change his/her mind afterwards and purport to accept the offer again. For example, Jean wanted to buy Peter’s car and offered him a price of $32,000. Peter then replied to say that $32,000 was below his expectation. In this case, Peter had rejected Jean’s offer and the offer no longer existed. Therefore, Peter could not change his mind and tell Jean that it was a mistake not to accept the offer. But then he can now sell the car to Jean by making a new offer, and Jean is free to accept it, contract will therefore formed. The second form of rejection to an offer is that the offeree rejects the offer made to him/her by a counter offer. This counter offer will destroy the original offer and introduces a new offer. In this case the original offeror may accept or deny this new offer. According to Hyde v Wrench (1840), where â€Å"A†, the offeror offered to sell an estate at a price of 1000 pounds, â€Å"B†, the offeror replied that he was willing to pa y 950 pounds only. The offer was refused, but afterwards, â€Å"B† sought to accept the initial offer. It was held that the offer has already terminated by the counter offer of 950 pounds, therefore no contract could be made at the time â€Å"B† tried to accept the initial offer as it no longer existed. However, it should be noted that a mere inquiry about the terms of offer to make the bargain more favourable, while he is willing to accept the offer is not a counter offer nor rejecting the offer. This principle lied in Stevenson v. McLean (1880), where â€Å"A† offered to sell iron to â€Å"B† for cash. â€Å"B asked if they could have 4 months credit. He has no intention to reject the offer made to him. 2. Revocation The offeror is free to withdraw or revoke from an offer at anytime given that the offer has not been accepted by the offeree. Given that revocation will not be effective until it is communicated to the offeree. Communication is not necessa rily made by the offeror himself provided that the offeree has been brought to notice of the revocation through a reliable source.