If one party fails to perform their duties, the contract may be terminated, and the non-breaching party may be able to recover losses caused by the breach. According to a Prior Agreement: Termination of contract may occur if the parties had previously formed an agreement regarding contract termination.
So, how an offer can be revoked?
In contract law, revocation can also refer to the termination of an offer. An offeror may revoke an offer before it has been accepted, but the revocation must be communicated to the offeree, although not necessarily by the offeror.
How can an offer be terminated by operation of law?
An offer can terminate by the death or insanity of either the offeror or the offeree. Here, if the person who makes or accepts the offer dies or is established as legally insane, then the offer will terminate. An offer can also terminate by a supervening illegality.
What constitutes a rejection of an offer?
An offer may be rejected either expressly or impliedly. A frequent case of implied rejection is a reply to an offer which purports to be an acceptance but which contains additions, limitations or other modi¬fications (see Article 2.1.11(1)).