What is an irrevocable offer?

An irrevocable offer is best understood as one that cannot be rescinded or withdrawn for a specified period of time. This means that once the offer is made, the offeror is legally bound to keep the offer open for acceptance until the predetermined duration expires. This is an important legal concept in contract law, as it provides assurance to the offeree that they can consider the offer without the risk that it might be revoked unexpectedly.

In many scenarios, an irrevocable offer occurs in contexts where the parties involved seek stability and certainty, such as in real estate contracts or during negotiations for large projects. The specification of a time limit ensures that both parties have clarity on their rights and obligations.

Other choices are misaligned with the definition of an irrevocable offer. An offer that is merely valid until accepted can still be revoked at any time before acceptance. Similarly, the stipulation that an offer is only made verbally or that it has no legal standing is inaccurate and does not reflect the nature of offers in a contractual context.