Michael, a real estate associate in Calgary, receives a signed offer to purchase for his seller client, Emily. The offer has a clause stating, 'This offer is open for acceptance until 23:59 on October 20, 2024.' On October 21, 2024, at 09:00, Emily decides to accept the offer and signs it. Has a binding contract been formed?

Question: Michael, a real estate associate in Calgary, receives a signed offer to purchase for his seller client, Emily. The offer has a clause stating, 'This offer is open for acceptance until 23:59 on October 20, 2024.' On October 21, 2024, at 09:00, Emily decides to accept the offer and signs it. Has a binding contract been formed?

Answer options:

• Yes, because Emily signed the contract, showing her intent to be bound. ✅ No, the offer has lapsed due to the specified time for acceptance expiring.
• Yes, as long as the buyer is informed of the acceptance immediately.
• No, because the acceptance was not communicated to the buyer before October 20th.

Correct answer: No, the offer has lapsed due to the specified time for acceptance expiring.

Explanation: An offer that specifies a time limit for acceptance automatically expires if not accepted within that period. Once the time for acceptance has passed, the offer is no longer available for acceptance, as per contract law principles regarding the termination of an offer.