Contracts

A buyer's offer states it will expire at 5:00 PM on Friday. The seller signs and returns the acceptance at 6:00 PM Friday. This creates:

AA binding contract, because the seller accepted within the same day
BNo contract — the offer expired before acceptance was communicated✓ Correct
CA voidable contract at the buyer's option
DA valid contract if the buyer endorses the late acceptance in writing

Explanation

If the seller accepts after the offer's expiration time, the acceptance is a counter-offer, not a valid acceptance. No contract is formed unless the buyer accepts the seller's late acceptance as a new offer.

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