Question

Paulson made an offer to Zahira as follows: "I offer to sell you 150 shares of Microsoft. It closed yesterday at $170. If you will buy 10 shares at that price I will give you 20 days to decide whether you want to buy the balance at the same price." Zahira agreed, and paid Paulson for 10 shares. Three days later the price of Microsoft went up to $195. Zahira decided to buy the other 140 shares, but when he called Paulson's office, he learned that Paulson had been killed in an automobile accident just a few moments before he called. Two weeks later, Zahira notified Paulson's executor of his acceptance. The executor claims that the offer to sell the remaining 140 shares was ended by Paulson's death. Is he correct? Explain. (Post is due before 11 PM Friday.)

Answer 1

In the given situation, as the offer was made by the deceased individual, thus offer becomes invalid, therefore the  Paulson's executor is correct when he stated that the offer is terminated when  Paulson died.

An offer is terminated in the following situations

Revocation of the offer

counteroffer

rejection of offer

lapse of time;

death or disability of either party;

or illegal performance