Which term describes cancellation by a legally entitled party before acceptance?

• A. Withdrawal
• B. Revocation
• C. Lapse of Time
• D. Counteroffer

Answer: (B)

Cancellation of an offer by the party who has the right to do so before the other side accepts is revocation. That means the offeror can withdraw the offer at any time prior to acceptance, and once communicated, the offer can no longer be accepted to form a contract. Lapse of time would apply if a deadline is set and passes without acceptance. A counteroffer is not just canceling the original offer; it’s a rejection that creates a new offer with different terms. Withdrawal is sometimes used informally, but the formal legal term is revocation.