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Patricia offers to buy a duplex in Oakland for $750,000. The offer states it expires at 5:00 PM on Friday. At 3:00 PM on Friday, Patricia calls her agent and says she wants to revoke her offer. At 4:30 PM, the seller signs and delivers the acceptance to Patricia's agent. Under California law, is there a valid contract?

Correct Answer

C) No, because Patricia revoked her offer before the seller's acceptance was communicated

Under California Civil Code §1586, an offer can be revoked at any time before acceptance is communicated to the offeror (unless supported by consideration as in an option contract). Patricia revoked at 3:00 PM, and the seller did not accept until 4:30 PM, so there was no valid acceptance of a live offer.

Answer Options
A
Yes, because the seller accepted before the offer expired at 5:00 PM
B
Yes, because an offer cannot be revoked once a deadline is set
C
No, because Patricia revoked her offer before the seller's acceptance was communicated
D
No, because telephone revocations are not valid under California's Statute of Frauds

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Related Topics & Key Terms

Key Terms:

revocationoffer_acceptanceCivil_Code_1586option_contract
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