What can terminate an offeree's power to accept an offer?

The correct answer highlights a fundamental principle in contract law that if the subject matter of an offer is destroyed, the offer is considered terminated. This is because the essential element required for the formation of a contract, which is the existence of the subject matter, is no longer available.

For instance, if someone offers to sell a specific car and that car is totaled before the offeree accepts the offer, the offer cannot be accepted because the object of the agreement no longer exists. Therefore, the destruction of the subject matter legally extinguishes the offer, rendering it impossible for the offeree to accept it.

Other factors, such as a change of mind or the receipt of new offers, may influence the dynamics of an offer but do not automatically terminate the power to accept the initial offer, as they do not affect the existence of the offer itself. Therefore, the destruction of the subject matter is definitive in concluding that the offer can no longer be accepted.