A buyer submits an offer with a financing condition that expires at 11:59 PM on Friday. The buyer's mortgage is approved on the following Monday. What is the legal status of this offer?
Correct Answer
B) The offer is automatically void due to the expired condition
When a condition precedent expires unfulfilled, the offer becomes void automatically. The timing of condition fulfillment is critical, and late satisfaction does not revive a contract that has already become void due to an expired condition.
Why This Is the Correct Answer
Option B is correct because conditions precedent in real estate contracts have strict timing requirements under Canadian real estate legislation. When a financing condition expires at 11:59 PM Friday and approval comes Monday, the condition was not satisfied within the specified timeframe. The contract becomes automatically void upon expiration of the unfulfilled condition, regardless of subsequent events. This automatic termination principle is fundamental to contract law and is consistently applied across Canadian provinces to provide certainty and finality to real estate transactions.
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A buyer submits an offer with a financing condition that expires at 11:59 PM on Friday. The buyer's mortgage application is approved at 10:30 AM on Saturday. What is the legal status of the offer?
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An Ontario buyer's offer includes a financing condition stating that unless the buyer gives the seller written notice by 11:59 p.m. on March 15 that the condition is fulfilled, the offer is null and void and the deposit is returned. The buyer's mortgage is declined on March 14, and the buyer first tells the seller on March 17. What is the status of the agreement?