California Real Estate Practice Exam

What can happen to an offer before it is accepted?

1. It must be ratified

2. It can be revoked

3. It automatically expires after 48 hours

4. It becomes irrevocable

The correct answer is: It can be revoked

An offer can be revoked before it is accepted, meaning that the person who made the offer can take it back and it no longer stands. This can occur for a variety of reasons, such as the offeror changing their mind or receiving a better offer from someone else. It is important to note that an offer must be accepted within the time limit specified by the offeror, or it will automatically expire. Additionally, an offer does not become irrevocable until it is accepted by the offeree. Option A, ratification, refers to the acceptance of an unauthorized contract or agreement by a party after the fact. Option C is incorrect because an offer does not expire automatically after 48 hours, the time limit for acceptance is determined by the offeror. And option D is incorrect because an offer does not become irrevocable until it is accepted by the offeree.