If revocation of an offer or counteroffer occurs after communication of acceptance, what is the consequence?

• A. It is permitted if both parties agree
• B. It cancels only the offer
• C. It could breach fiduciary duty
• D. It is a breach of contract

Answer: (D)

Once acceptance is communicated, a binding contract is formed. If the offeror tries to revoke after that point, it repudiates the agreement that has already come into existence, which is a breach of contract. The non-breaching party can pursue damages or other remedies for that breach. The other options don’t fit because the contract isn’t merely canceled or allowed by mutual agreement after acceptance; a revocation after acceptance undermines a contract that has already been created. fiduciary duties may come into play in real estate, but the core consequence here is a breach of contract due to post-acceptance revocation.