If the subject matter of the offer is destroyed or becomes illegal, the offer immediately terminates. True or False
The correct answer and explanation is:
True.
An offer is a promise or proposal made by one party to another, which, when accepted, forms the basis of a contract. However, certain conditions can cause an offer to automatically terminate, even before the offeree has accepted it.
If the subject matter of the offer is destroyed or becomes illegal, the offer is automatically terminated. This is because the offer’s foundation—whether it’s a specific object, service, or action—is no longer available or lawful. For instance, if someone offers to sell a piece of property and that property is destroyed before the offer is accepted, the offer cannot be fulfilled. Similarly, if the subject of the offer becomes illegal, such as offering to sell a product that is later banned, the offer terminates because it cannot be legally executed.
This principle is tied to the idea that a contract cannot be formed if it involves something impossible or illegal. The offeror is no longer capable of performing their obligation due to the destruction or illegality of the subject matter, and as such, the offer ceases to exist.
Additionally, the termination of the offer in such circumstances is not dependent on the actions of the offeror or offeree. Even if the offeror wishes to proceed with the offer, they cannot do so because the subject matter is no longer available or legal. Therefore, it’s important for both parties in a contract to ensure the subject matter remains intact and lawful for the offer to remain valid.