Also known as: rejection of offer · offer rejection · rejecting an offer · rejection
Written by attorneys · grounded in primary & secondary sources — see below
A manifestation by an offeree of intention not to accept an offer that terminates the offeree's power of acceptance unless the offeror has manifested a contrary intention. The termination occurs upon receipt of the rejection by the offeror.
Roger Ramirez offered to sell land to Rina Rahman for a fixed price. Rahman replied that she would not buy at that price. Two days later Rahman sent a message accepting the original terms. Ramirez refused to proceed. The rejection had already ended Rahman's power to accept.
Congress passed a statute funding technology grants and the President signed it. The President later directed an agency to cancel specific grants already awarded under the statute. The affected firms sued. The directive exceeded authority because the President may approve or reject an entire bill but may not cancel discrete provisions after enactment.
Select any source to read its text and confirm it supports the definition.
Rebecca Ross bought machinery from Riverfront Developments. Upon delivery Ross discovered defects and properly rejected the goods while they remained in her possession. Ross retained a security interest in the machinery for amounts paid and expenses incurred and could resell the goods to recover those sums.
Renee Rogers paid for an option to purchase property from Ralph Richardson within sixty days. Rogers sent a letter rejecting the option. Two weeks later she attempted to exercise it. The rejection did not terminate her power of acceptance under the option contract.
Roland Rhodes contracted to buy goods from Raven Logistics with tender at the seller's warehouse. The goods arrived and Rhodes rejected them for nonconformity. Damages were measured using the market price at the place of arrival rather than the original place for tender.
Royal Crest Hotels offered to lease space to Rhapsody Entertainment. Rhapsody replied that it would not lease on those terms. Rhapsody later sent an acceptance of the original offer. The acceptance was ineffective because the rejection had already terminated Rhapsody's power of acceptance.
No. A rejection sent by mail or telegram does not terminate the power of acceptance until it is received by the offeror. An acceptance mailed after the rejection but received first may still form a contract.
Yes. Rejection or a counter-offer does not terminate the power of acceptance under an option contract. The offeree may still exercise the option unless the option itself has been discharged.
A statement that the offeree is taking the offer under further advisement prevents the communication from operating as a rejection. The power of acceptance continues.
A rightful rejection gives the buyer a security interest in the goods for payments made and reasonable expenses. The buyer may hold and resell the goods in the same manner as an aggrieved seller.
…to the fact that under the redevelopment plan land would be leased or sold to private developers for redevelopment.[^maj-15] Our rejection of that contention has particular relevance to the instant case: "The public end may be as well or better served through an agency of private enterprise than through a department of…