What happens to an offer when it is rejected by a party?

When an offer is rejected by a party, it is considered terminated. This means that the offer is no longer valid and cannot be accepted at a later time. Once an offer is rejected, the original offeror has no obligation to keep it open, and the offeree cannot revive the rejected offer without the consent of the offeror.

This principle is foundational in contract law, emphasizing that the rejection of an offer signifies the offeree's refusal to accept the terms proposed. Thus, the offer ceases to exist, which is why the termination of the offer aligns with the correct answer.

The other choices reflect misunderstandings of how offers operate in contract law. For example, an offer does not become enforceable once rejected; it loses its binding nature. Similarly, a rejected offer cannot be accepted later without new negotiation or an offer from the original offeror, and it certainly does not remain valid after a formal rejection. These principles ensure clarity and fairness in the formation of contracts.