Revocation of Offer

In one sentence

A withdrawal of an offer by the person who made it, ending the other party's power to accept.

Plain English

Revocation is when the person who made an offer takes it back before the other person accepts it. Once you revoke an offer, the other person can no longer accept it and create a binding contract. A revocation must be communicated to the other party—you can't just change your mind silently. However, there are limits: if the other person has already accepted, or if you promised to keep the offer open for a set time (called an option), you may not be able to revoke.

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Example

A seller emails a buyer offering to sell a house for $300,000, with the offer open for one week. Three days later, the seller sends another email saying, 'I revoke my offer.' The buyer can no longer accept the original offer. If the buyer had already accepted before the revocation email arrived, there would be a binding contract.

Used in a sentence

“The seller's revocation of the offer came too late because the buyer had already accepted it.”

Related terms

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.

Lapse of Offer

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

Rejection of Offer

A clear refusal to accept an offer, which ends the offer's power to create a contract.

Option Contract

A binding agreement giving one party the right to buy, sell, or perform within a set time.

Termination for Cause

Ending a contract due to the other party's breach or serious misconduct.

Consideration

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

Offeror

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

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.