Under what condition is an offer option terminated?

An option contract is a type of agreement where the offeror grants the offeree the exclusive right to accept an offer for a specified period of time. The key characteristic of an option is that the offeree has the right to decide whether or not to accept the offer during this predetermined time frame.

When the offer period expires, the option is terminated because the offeree no longer has the right to accept the offer. The expiration of the offer period signifies that the terms of the agreement are no longer binding, and therefore, the offer cannot be accepted after this point.

Other factors can affect the termination of an offer, such as revocation by the offeror or acceptance by the offeree. However, in the context of an option, these actions do not relate to the expiration of the specified time period. Once that time period elapses, the offer is automatically terminated, regardless of other circumstances. This inherent feature of option contracts highlights the importance of timelines when it comes to binding agreements.

Thus, the option correctly identifies that an offer option is terminated upon the expiration of the offer period.