Which is a termination of an offer due to a supervening illegality?

Which is a termination of an offer due to a supervening illegality?

• A. Lapse of time
• B. Supervening illegality
• C. Revocation by offeror
• D. Death of party

Answer: (B)

Supervening illegality stops an offer because a change in law or regulation makes the proposed performance illegal. Once that happens, there’s nothing the offeree can accept that would be legal, so the offer ends automatically by operation of law. This is different from a revocation (withdrawal by the offeror before acceptance), a lapse of time (the offer expires after a set period), or the death of a party (which generally terminates the offer unless an option contract exists). For example, if the offer is to supply a product that is suddenly banned, the offer is terminated by the new illegality, not by withdrawal or time.

Supervening illegality stops an offer because a change in law or regulation makes the proposed performance illegal. Once that happens, there’s nothing the offeree can accept that would be legal, so the offer ends automatically by operation of law. This is different from a revocation (withdrawal by the offeror before acceptance), a lapse of time (the offer expires after a set period), or the death of a party (which generally terminates the offer unless an option contract exists). For example, if the offer is to supply a product that is suddenly banned, the offer is terminated by the new illegality, not by withdrawal or time.