Contracts
A buyer's offer states that it will expire at 5:00 p.m. on Friday. On Friday at 6:00 p.m., the seller accepts the offer. Which of the following is TRUE?
AA binding contract was formed because the seller accepted
BNo contract was formed — the offer expired before acceptance✓ Correct
CThe contract is voidable at the buyer's option
DAREC must intervene to determine contract validity
Explanation
An offer must be accepted within the time specified or before revocation. If the seller's acceptance comes after the stated expiration, the original offer has lapsed and no contract is formed. The seller's late 'acceptance' is treated as a new offer.
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