California Bar Exam 2026 – 400 Free Practice Questions to Pass the Exam

Indirect revocation of an offer occurs when the offeree learns through reliable means that the offeror has decided to no longer pursue the offer, even if the offeror has not directly communicated this decision to the offeree. This situation demonstrates that the revocation of the offer does not require an explicit statement or formal communication from the offeror to be effective. Instead, the offeree's knowledge that the offeror has changed their mind effectively nullifies the offer.

In the realm of contract law, timely and accurate communication is extremely important. When an offeree receives valid information from an external source indicating the offeror’s intention to withdraw the offer, it imposes an obligation on the offeree to recognize the change in circumstances. Recognizing this principle helps clarify why the other options do not accurately represent the idea of indirect revocation:

- The first option suggests the necessity for a rejection by the offeree to make a new offer, which does not align with the concept of indirect revocation.

- The third option focuses on explicit cancellation by the offeror, which is not needed for indirect revocation to occur.

- The fourth option implies a waiting period which is irrelevant to indirect revocation as the offeree's knowledge about the offeror's stance is