Contracts

A Maine buyer's offer states 'this offer expires at 5 PM on Friday.' The seller's signed acceptance is faxed to the buyer's agent at 5:05 PM Friday. Is there a binding contract?

AYes, because the seller signed before the deadline
BNo, because acceptance was not communicated before the deadline✓ Correct
CYes, because fax transmission is instantaneous
DIt depends on the listing agent's interpretation

Explanation

An offer expires at the stated deadline. Acceptance must be communicated to the offeror before the deadline. If acceptance was not communicated until 5:05 PM, after the 5:00 PM deadline, there is no binding contract.

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