Question

The offeror died four hours after the seller accepted the offer to purchase. One of the following statements is true with respect to the status of the negotiations.:

a) A contract exists, but it may be rescinded by the executor of the offeror's estate.
b) A contract exists and it may not be rescinded by the executor of the offeror's estate.
c) The offer was revoked by operation of law on the offeror's death.
d) A contract exists, but either party (or a representative) may rescind within a reasonable time.

Answer 1

The correct answer is that a contract exists and may not be rescinded by the executor of the offeror's estate if the acceptance was communicated before the offeror's death.

Step-by-step explanation:

When the offeror dies after an offer has been accepted, the status of the contract is determined by whether the acceptance was communicated to the offeror or the offeror's agent before the offeror's death. Assuming the offer was for a bilateral contract and the acceptance was properly communicated, a valid contract would be formed at the moment of acceptance. If the acceptance was not communicated before the offeror died, the offer would be revoked by operation of law upon the offeror's death.

Based on the information provided, it seems the acceptance was communicated while the offeror was alive, therefore:
A contract exists and it may not be rescinded by the executor of the offeror's estate.

This means the correct answer is b) A contract exists and it may not be rescinded by the executor of the offeror's estate. The contract is binding upon the parties even after the offeror's death, and the executor of the estate steps into the shoes of the deceased to fulfill the contractual obligations.