A buyer makes an offer on a residential property in Ottawa, specifying that the offer is irrevocable until 10:00 PM on Tuesday. At 9:00 PM on Tuesday, the buyer's salesperson receives a call from the seller's salesperson stating that the seller accepts the offer. However, the buyer had already purchased another property at 8:30 PM. Is the buyer bound to the Ottawa offer?

Question: A buyer makes an offer on a residential property in Ottawa, specifying that the offer is irrevocable until 10:00 PM on Tuesday. At 9:00 PM on Tuesday, the buyer's salesperson receives a call from the seller's salesperson stating that the seller accepts the offer. However, the buyer had already purchased another property at 8:30 PM. Is the buyer bound to the Ottawa offer?

Answer options:

• Yes, because acceptance occurred within the irrevocable period. ✅ No, because the buyer was not informed of the acceptance before purchasing another property.
• Yes, the seller's acceptance was effectively communicated.
• No, the buyer could have revoked the offer at any time before acceptance was communicated.

Correct answer: No, because the buyer was not informed of the acceptance before purchasing another property.

Explanation: For acceptance to be valid and binding, it must be communicated to the offeror (buyer) before the offer is revoked or before the offeror acts in a way inconsistent with the offer, such as purchasing another property, according to principles of contract law.