During negotiations for a detached home in London, Ontario, the buyer's agent emails an offer to the seller's agent at 3:00 PM, with an irrevocable period of 8:00 PM that same day. At 6:00 PM, the seller's agent faxes a signed acceptance to the buyer's agent. However, due to a power outage at the buyer's agent's office, the fax is not received until 8:15 PM. Which of the following statements is true?

Question: During negotiations for a detached home in London, Ontario, the buyer's agent emails an offer to the seller's agent at 3:00 PM, with an irrevocable period of 8:00 PM that same day. At 6:00 PM, the seller's agent faxes a signed acceptance to the buyer's agent. However, due to a power outage at the buyer's agent's office, the fax is not received until 8:15 PM. Which of the following statements is true?

Answer options:

• A valid contract was formed at 6:00 PM when the seller's agent sent the fax. ✅ No contract was formed, as acceptance was not communicated within the irrevocable period.
• The contract is valid because the seller accepted before the irrevocable period expired.
• The buyer can choose whether or not to be bound, as there was a delay in communication.

Correct answer: No contract was formed, as acceptance was not communicated within the irrevocable period.

Explanation: Acceptance must be communicated to the offeror (or their agent) within the irrevocable period. Despite the seller's agent sending the fax within the timeframe, it was not received by the buyer's agent until after the irrevocable period had passed, meaning no valid contract was formed.