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?
Correct Answer
C) It is still an unaccepted offer that lapses at 10 p.m. and gives no backup rights
Accepting Offer A at 6 p.m. created a binding agreement with that buyer, but it did not reject Offer B. Offer B remains an unaccepted offer until it lapses at 10 p.m. It gives Buyer B no priority or backup position; an offer only becomes a contract if the seller accepts it, and after 10 p.m. it cannot be accepted at all.
Why This Is the Correct Answer
Offer B was never accepted, so it created no contract. It was not rejected automatically either, so it stays open until it lapses at 10 p.m. Nothing in the facts gives it backup status or priority, so the accurate reply is that it is an unaccepted offer with no rights attached.
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Previous Question
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?
Next Question
A seller receives two offers on the same day. The first offer is conditional on financing, and the second offer is firm but for a lower price. Which statement about the seller's options is correct?