Legal Definitions - revocable

Revocable describes something that can be canceled, withdrawn, or changed by the person who created it or granted it. It signifies that an action, document, or agreement is not final and can be undone.

Here are some examples to illustrate the concept of "revocable":

• Revocable Living Trust: Imagine a person creates a revocable living trust to manage their assets during their lifetime and distribute them after their death. Because the trust is revocable, the person who created it can modify its terms, add or remove assets, change beneficiaries, or even completely dissolve the trust at any point while they are alive and mentally capable. They retain full control over the trust's contents and instructions until their death.

• Offer in a Contract: Consider a situation where a company sends a written offer to another business to purchase a large quantity of supplies at a specific price. Before the second business formally accepts this offer, the first company can decide to withdraw it. This is an example of a revocable offer; the company can cancel or take back their proposal before it is accepted, preventing a binding contract from being formed.

• Power of Attorney: An individual might grant a power of attorney to a trusted family member, allowing them to make financial or medical decisions on their behalf. If this power of attorney is designated as revocable, the individual who granted it can, at any time, cancel the authority they gave to the family member. This means they can terminate the arrangement and take back control of their decision-making, as long as they are mentally competent to do so.