When does an offer lapse in the absence of a specified deadline?

An offer lapses in the absence of a specified deadline when a reasonable time has passed is the correct understanding of contract law principles. Offers do not remain open indefinitely; they typically must be accepted within a timeframe that is deemed reasonable, which can depend on various factors such as the nature of the offer, the market conditions, and the circumstances surrounding the transaction.

What constitutes a "reasonable time" can vary from case to case. For example, the time might be shorter for perishable goods than for real estate transactions. Therefore, it is the expectation of the law that if no specific deadline is provided, the offer will not persist beyond a duration that is commonly acknowledged as appropriate for the context in which the offer was made.

In contrast, the other options suggest either unrealistic timelines or conditions that do not align with established legal principles. The notion that an offer lapses immediately after it is made or only when the offeree decides fails to capture the essence of reasonable timeframes recognized in contract law.