Offer and Acceptance
Our friends Jack and Jill, brother and sister, were thinking of buying a house together. They decided to go house hunting with a friend of theirs, Spike. They came upon an open house. The owner was present and showed Jack, Jill and Spike her 7 bedroom home. (Jack and Jill planned to do a lot of entertaining)
Jill and the owner went into the kitchen to talk about the house. The owner indicated that she would be willing to sell the home for $250,000. Spike overhearing all this thought that this was a bargain so he intervened and said that he would accept such an offer. Jill was quite disturbed by Spike's acceptance since Spike never previously revealed his desire to buy a home and knew quite well that Jack and Jill were the ones who desperately needed a home. Jill quickly told Spike off and asked him to leave. Ashamed of this scolding, Spike left vowing never to speak to Jack and Jill ever again.
Jill continued the conversation with the owner and they agreed that Jill would send the offer to the owner in writing the next morning. The next morning, Jill got into a huge fight with Jack over his friendship with Spike. (If this sounds like a soap opera, bear with me.) To spite Jack, Jill decided to send the written offer to the owner without Jack's name on the offer.
The owner received the offer that was for the full value of her asking price. The owner signed the offer and put the offer in her desk drawer. She forgot to send it back to Jill.
Spike was still interested in buying the house. He approached the owner again, this time with a written offer in hand, in the amount of $350,000. She gladly accepted it in writing right there on the spot.
Jill found out that Spike bought the house. She also found out that the owner had accepted her offer and had left the fully signed offer in her desk drawer. Jill decided to sue the owner for breach of contract.
Now you be the judge:
The principles of law presented in these articles are based on Canadian law. However, the information provided by the Fraud Bureau in this Law Beat series is not legal advice nor conveyed in the course of an solicitor/attorney-client relationship, but is intended merely as general information related to common legal issues. Your access to this article is subject to the Terms of Use and Disclaimer. You are not to rely upon this article for the basis of any decision you wish to make. If you have specific legal problem or question, please contract your legal advisor for specific legal advice relating to your question or problem.