A seller receives two offers at the same time: $500,000 firm and $495,000 subject to financing. The seller signs and returns only the $500,000 offer. What is the legal status of the $495,000 offer?
Correct Answer
B) It stays open until it expires or the buyer revokes it
Under the common law of contract, an offer that has not been accepted or rejected remains open until it lapses at its stated expiry time or the offeror revokes it. Accepting a different offer does not reject it, so the seller should let it lapse or reject it rather than accidentally accept it.
Why This Is the Correct Answer
Nothing has ended the second offer: it has not been accepted, rejected or countered, and it has not expired or been revoked. It stays open until one of those things happens.
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Previous Question
A seller receives two offers on the same property. The first offer is conditional on financing, and the second is unconditional but for a lower price. What is the seller's best legal option?
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A seller receives two offers at the same time: Offer A at $500,000 with no conditions and Offer B at $520,000 with a financing condition, open until midnight. The seller signs and returns Offer A. Is the seller legally required to deliver a written rejection of Offer B?