Lapse

In one sentence

An offer that expires because a deadline passes or too much time has gone by.

Plain English

An offer doesn't last forever. If the offeror sets a time limit ("This offer expires Friday"), the offer lapses when that deadline passes. Even without a stated deadline, an offer will lapse after a reasonable amount of time based on the circumstances. Once lapsed, the offer is gone and can't be accepted.

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Example

A real estate agent tells a buyer, "This house price of $400,000 is good for 48 hours." If the buyer doesn't accept within 48 hours, the offer lapses. After that time, the buyer can't accept the $400,000 price, even if they want to.

Used in a sentence

“The insurance quote lapsed after 30 days, so the applicant had to request a new one.”

Related terms

Rejection

A party's refusal to accept an offer, which terminates the offer.

Revocation

An offeror's withdrawal of an offer before it's accepted, ending the power to form a contract.

Contract Formation

The process by which parties create a legally binding agreement.

Offeror

The person who makes an offer to enter into a contract.

Lapse of Offer

An offer that expires because too much time has passed or a condition fails.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

Consideration

Something of value exchanged by each party to make a contract binding.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.