Revocation

In one sentence

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

Plain English

The person who makes an offer can take it back anytime before the other person accepts it. This takeaway is called revocation. Once revoked, the offer is gone, and the other party can no longer accept it to create a contract. However, some offers can't be revoked—like a firm offer or an option contract, where the offeror has promised to keep the offer open.

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Example

A contractor bids $50,000 to renovate a house. Before the homeowner accepts, the contractor calls and says, "I'm withdrawing my bid." That's revocation. The homeowner can no longer accept that $50,000 offer because it no longer exists.

Used in a sentence

“The company's revocation of the job offer came just hours before the candidate was set to start.”

Related terms

Lapse of Offer

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

Firm Offer

A written promise by a merchant to keep an offer open for a set time, which can't be revoked.

Option

A contract giving one party the right to buy, sell, or do something at a set price within a time frame.

Contract Formation

The process by which parties create a legally binding agreement.

Offeror

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

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.