MBE Question of the Day – Answer

As bar exam results from the July 2022 exam are released in states around the country, we will be posting several real MBE questions every week, with the answer to be posted the following day. Please feel free to email us with any questions about these, and if you were unsuccessful on the bar exam, submit your score report here for a free score report evaluation from our bar exam experts!

MBE Question of the Day – Answer

(D) is correct.
Issue: Whether revocation of an offer is effective when communicated indirectly to the offeree?
Rule: An offer may be revoked by direct or indirect communication. Revocation by direct communication occurs when the offeror directly tells the offeree that the offer is revoked. A direct communication of revocation terminates the offeree’s power of acceptance as long as the
termination is communicated before the offeree accepted the offer. If the revocation is not directly communicated between the offeror and the offeree, then it is an indirect revocation. An indirect communication is effective and will terminate the offer if it is from a reliable source and the acts or statements communicated would indicate to a reasonable person that the offer is terminated (and such information must be correct).
Analysis: In this case although the information communicated is correct, the five-year old daughter is likely too young to be considered a reliable source. Thus the socialite still retains the power to accept the sculptor’s offer. The sculptor’s indirect communication was not effective and did not terminate the offer.
(D) is correct because the five-year old daughter is not a reliable source as required for terminating an offer by indirect communication.
(A) and (B) are incorrect because though the daughter communicated correct information, she is too young to be considered a reliable source. (C) is incorrect because direct communication is not necessary to effectively revoke an offer; an offer may be revoked by indirect communication if the communication is accurate, it is conveyed by a reliable source and the statements or acts communicated are such that a
reasonable person would believe the offer is terminated.