A seller receives three offers on the same day. The first offer expires at 6 PM, the second at 8 PM, and the third at 10 PM. The seller signs and returns the second offer at 7 PM. What is the legal status of the three offers?

Q: What is the correct answer to: A seller receives three offers on the same day. The first offer expires at 6 PM, the second at 8 PM, and the third at 10 PM. The seller signs and returns the second offer at 7 PM. What is the legal status of the three offers?

The correct answer is Only the second offer is valid; the first expired and the third is automatically revoked. Option A correctly identifies that only the second offer remains valid. The first offer expired at 6 PM before any acceptance occurred. When the seller accepted the second offer at 7 PM, a binding contract was formed. This acceptance automatically revoked the seller's legal ability to accept the third offer, as selling the same property twice is legally impossible under Canadian contract law. The third offer becomes void due to legal impossibility, not requiring formal rejection.

Q: What background knowledge is needed for this Contracts & Agreements question?

Contract formation requires offer, acceptance, consideration, and legal capacity. In real estate, offers have specific expiry times and can be revoked before acceptance. Once an offer is accepted, a binding contract forms immediately. The doctrine of legal impossibility prevents a party from entering conflicting contracts for the same subject matter. Under Canadian provincial real estate legislation (TRESA in Ontario, RESA in Alberta, etc.), real estate contracts must be in writing and properly executed. Multiple offers are common in competitive markets, but only one can be accepted per property.

Q: What is a good way to remember the answer to this Contracts & Agreements question?

Think of offers like musical chairs - when the music stops (seller accepts), only one person gets the chair (property). All other players (offers) are automatically out of the game, regardless of how long they planned to keep playing (expiry times). Once someone sits down (acceptance), the game is over for everyone else. When you see multiple offer questions, visualize musical chairs. Ask yourself: 'Has someone already sat down (been accepted)?' If yes, all other offers are automatically out, regardless of their expiry times or whether they've been formally notified.

Q: What exam tip applies to this Contracts & Agreements question?

Focus on the acceptance time versus expiry times. Once any offer is accepted, all others become legally impossible to fulfill. Don't get distracted by notification requirements - the legal status changes automatically upon acceptance.

Q: How does this Contracts & Agreements concept apply in real world practice?

A listing agent receives three offers on a hot property Friday afternoon. The first expires at 5 PM, second at 7 PM, third at 9 PM. At 6 PM, the seller accepts the second offer and signs back. The agent must immediately inform the third buyer that their offer can no longer be accepted, even though it hasn't expired, because the property is now sold. The first offer simply expired naturally.

Question

Contracts & AgreementsContract Law FundamentalsMEDIUM

A seller receives three offers on the same day. The first offer expires at 6 PM, the second at 8 PM, and the third at 10 PM. The seller signs and returns the second offer at 7 PM. What is the legal status of the three offers?

Answer Options

A

Only the second offer is valid; the first expired and the third is automatically revoked

B

All three offers remain valid until their respective expiry times

C

The seller must notify the first and third buyers that their offers are rejected

D

The seller can still accept any of the three offers until 10 PM