61. A buyer makes an offer on a property through the listing licensee. The buyer's offer has a 24-hour time limit included. The licensee presents the offer and the seller accepts it. The licensee returns to the firm's office and finds a dated and timed fax from the buyer stating his offer is withdrawn. Which of the following is true in this situation?
Answer: B
The buyer can withdraw the offer any time prior to notification of acceptance.
In this situation, the buyer retains the right to withdraw the offer at any time before the seller has officially accepted it. Since the offer was withdrawn via fax before the seller was notified of its acceptance, the buyer’s action is valid.
A) The buyer cannot withdraw the offer during the 24-hour time period
This option is incorrect because the buyer does have the right to withdraw the offer at any point before the seller receives notification of acceptance. The 24-hour time limit pertains to the acceptance of the offer, not to the buyer's right to rescind their offer.
B) The buyer can withdraw the offer any time prior to notification of acceptance
This statement accurately reflects the principle that an offer can be revoked before acceptance is communicated. In this case, since the buyer faxed the withdrawal before the seller was notified of the acceptance, the buyer's action is legitimate and enforceable.
C) The seller can sue the buyer for breach of contract
This option is incorrect because there is no contract in effect until the seller accepts the offer and the buyer is notified. Since the offer was withdrawn before such notification, there is no basis for a breach of contract claim.
D) The licensee can sue the buyer for breach of contract
Similar to option C, this statement is also incorrect. The licensee does not have the standing to sue for breach of contract, as the contract was never formed due to the buyer's timely withdrawal of the offer.
Conclusion
The correct answer, B, reinforces the legal principle that a buyer can withdraw an offer anytime before it is accepted and communicated to the seller. All other options fail to recognize this fundamental aspect of contract law, as they incorrectly assume an acceptance or breach occurred when it did not. Thus, the buyer's right to withdraw stands firm in this scenario.