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.
Why This Is the Correct Answer
The second offer was accepted and returned within its time, so it is a binding agreement. The first offer had already lapsed at 6 p.m. The third remains an open offer until 10 p.m., but the seller is already bound to the second buyer and would be in breach if it accepted the third.
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