A seller receives two offers on the same day: Offer A at $500,000 with no conditions, open until 9 p.m., and Offer B at $520,000 with a financing condition, open until 11 p.m. At 8 p.m. the seller signs Offer A and returns it to that buyer. What happens to Offer B?
Correct Answer
D) It stays open until 11 p.m., but accepting it would breach the agreement on Offer A
Signing and returning Offer A at 8 p.m. formed a binding agreement with that buyer. Offer B is not voided by that acceptance; it remains an open offer until it lapses at 11 p.m., unless the buyer withdraws it or the seller rejects it. The seller cannot accept it, though, without breaching the agreement on Offer A.
Why This Is the Correct Answer
The acceptance of Offer A was signed and returned within its time, creating a binding agreement. Offer B is still an open offer until 11 p.m., since nothing in law voids it automatically, but the seller is already committed and accepting Offer B would put the seller in breach of the first agreement.
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A seller receives two competing offers simultaneously. Under Ontario's rules for registrants, what is the obligation of the seller's registrant?
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A seller receives Offer A for $500,000 with no conditions and Offer B for $520,000 with a home inspection condition, open until 10 p.m. At 6 p.m. the seller accepts Offer A and returns it to that buyer. Buyer B's agent asks what legal standing Offer B now has. What is the correct reply?