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?
Correct Answer
B) The seller can accept either offer or reject both offers
A seller has no obligation to accept any offer and can choose to accept either offer based on their preferences regarding price, conditions, and other terms. The seller might prefer a firm offer even at a lower price to avoid the uncertainty of conditions, or might prefer the higher conditional offer.
Why This Is the Correct Answer
Option B correctly reflects the fundamental principle of contract law that sellers have complete discretion over offer acceptance. Under Canadian real estate law and common law principles, property owners are not obligated to accept any offer, regardless of price, timing, or terms. The seller can evaluate offers based on their own criteria, including price, conditions, closing dates, and risk tolerance. This principle is supported by provincial real estate legislation across Canada, which protects sellers' rights to make informed decisions about their property transactions without external compulsion.
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Previous Question
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?
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A seller receives two offers on the same day with identical terms except for closing dates. Under common law contract principles, what should the seller's agent advise?