A seller receives three offers on the same day. The first is open until 6 p.m., the second until 8 p.m., and the third until 10 p.m. At 7 p.m. the seller signs the second offer and returns it to that buyer. What is the legal position at 7:30 p.m.?
Correct Answer
C) The second is binding; the third stays open, but accepting it would breach the second agreement
The first offer lapsed at 6 p.m. When the seller signed the second offer and returned it at 7 p.m., before its 8 p.m. deadline, a binding agreement was formed. Accepting one offer does not revoke or reject another; the third offer stays open until it lapses at 10 p.m., but the seller cannot accept it without breaching the agreement with the second buyer.
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