MBE Rules · Contracts
Termination of offer — death or incapacity
The rule
Death or incapacity of the offeror or offeree terminates the offer automatically, even if the other party has no notice. Exception: option contracts survive the death of the offeror because consideration has already been exchanged.
In plain English
If the person making or receiving an offer dies or becomes unable to act, the offer is no longer valid. But if there's an option contract, it stays valid even if the offeror dies.
Worked example
The defendant offers to sell a car to the buyer, but dies before the buyer accepts. The offer is terminated. However, if the buyer had paid for an option to buy the car later, the offer remains valid despite the defendant's death.
Memory hook
Dead offer, dead deal. When the offeror or offeree dies or becomes incapacitated, the offer dies too—unless it's an option contract.
The trap
Students think: Offers survive death if the offeree accepts before finding out. Wrong, because death terminates the offer automatically. The actual test is immediate termination upon death or incapacity.
How examiners test it
The MBE loves: offer made, then offeror dies before acceptance. Trap: assuming acceptance is valid without knowing of death. Answer: offer is terminated upon death, notice irrelevant.
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