What happens to an offer if the subject matter of the offer is destroyed?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

When an offer's subject matter is destroyed, it automatically becomes void as a matter of law. This is because the essential terms of the offer cannot be fulfilled if the subject matter is no longer available. For instance, if someone offers to sell a specific car and that car is destroyed in an accident, the offer cannot be accepted because there is no longer a specific subject for the agreement to pertain to.

The key principle here lies in the concept of "offer and acceptance" in contract law. The offer requires the ability to meet its terms, and the destruction of the subject matter means that one side can no longer perform its contractual obligations. This legal principle helps ensure that agreements are based on viable and existing conditions, preventing confusion and potential disputes resulting from non-existent subject matter. Thus, upon destruction of the subject matter of an offer, the offer is indeed considered revoked automatically by operation of law.

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