Which action will make an offer irrevocable under common law?

Which action will make an offer irrevocable under common law?

• A. A promise to keep the offer open for a specified time without consideration.
• B. A promise to keep the offer open for a specified time with consideration.
• C. The offeree's partial performance.
• D. The offer is unilateral.

Answer: (B)

The essential idea is that an offer becomes irrevocable only when it is converted into an option contract. An option contract exists when the offeror promises to keep the offer open for a specified period and the offeree provides something of value (consideration) in exchange. That promise to hold the offer open is binding, so the offer cannot be revoked during the stated time. Without consideration, a promise to keep the offer open is not legally binding, so the offeror can revoke at any time before acceptance. Merely characterizing the offer as unilateral does not by itself make it irrevocable; revocation rules for unilateral offers depend on whether performance has begun and other narrow doctrines, but they don’t guarantee irrevocability simply due to the unilateral form. Partial performance by the offeree likewise does not universally create irrevocability as a general rule. Therefore, the action that makes an offer irrevocable under common law is providing consideration in exchange for keeping the offer open for a specified time—creating an option contract.

The essential idea is that an offer becomes irrevocable only when it is converted into an option contract. An option contract exists when the offeror promises to keep the offer open for a specified period and the offeree provides something of value (consideration) in exchange. That promise to hold the offer open is binding, so the offer cannot be revoked during the stated time.

Without consideration, a promise to keep the offer open is not legally binding, so the offeror can revoke at any time before acceptance. Merely characterizing the offer as unilateral does not by itself make it irrevocable; revocation rules for unilateral offers depend on whether performance has begun and other narrow doctrines, but they don’t guarantee irrevocability simply due to the unilateral form. Partial performance by the offeree likewise does not universally create irrevocability as a general rule.

Therefore, the action that makes an offer irrevocable under common law is providing consideration in exchange for keeping the offer open for a specified time—creating an option contract.