revocation

a cancellation. In the world of contracts, revocation refers to the withdrawal of a contractual offer. In some instances, as in the case of a right-of-rescission period, revocation may also refer to the withdrawal of an acceptance.

Fergus works for an electronics firm that supplies components to the aerospace industry. The company commonly provides fixed bids to its clients. Each bid represents an offer, guaranteeing a price for a given period of time, usually 60 days, pending acceptance of the bid. Fergus' firm, however, retains a right of revocation which it can invoke at any time prior to acceptance of the offer, thereby canceling the offer. This is done to protect the company against sudden economic shifts that would be costly.