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?
Correct Answer
D) No; if it is not accepted, Offer B simply lapses at midnight with no rejection needed
No statute, regulation or rule of contract law requires a written rejection of an unaccepted offer. Offer B stays open until midnight and then lapses on its own if it is not accepted. The agreement on Offer A became binding when the seller signed it and returned it, and it does not depend on anything done about Offer B.
Why This Is the Correct Answer
Offer B ends by lapse at midnight if the seller does nothing, so no written rejection is required. The agreement on Offer A was formed when the signed acceptance was returned. No provision of TRESA or O. Reg. 567/05 requires the seller to reject competing offers in writing.
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Previous Question
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?
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