Lisa is thinking of buying a new house. On
Saturday, she inspected a large residential property in Melbourne which met all
her criteria. The real estate agent told her that the price of the house was
$2.5 million. Lisa replied that she really liked the house, but that she will
need some time to organise finance. Then she adds, ‘I will give you $50 if you
keep the offer open for two weeks’. The real estate agent agrees, Lisa hands
him a $50 note, and he puts the note in his wallet.
After three days, the real estate agent contacts
Lisa and tells her that he revokes the offer, as the house has been sold to
someone else. He also adds that he will give her the $50 back. Lisa seeks your
advice.
Which of the following is CORRECT ?

Question

Lisa is thinking of buying a new house. On
Saturday, she inspected a large residential property in Melbourne which met all
her criteria. The real estate agent told her that the price of the house was
$2.5 million. Lisa replied that she really liked the house, but that she will
need some time to organise finance. Then she adds, ‘I will give you $50 if you
keep the offer open for two weeks’. The real estate agent agrees, Lisa hands
him a $50 note, and he puts the note in his wallet. 
 After three days, the real estate agent contacts
Lisa and tells her that he revokes the offer, as the house has been sold to
someone else. He also adds that he will give her the $50 back. Lisa seeks your
advice. 
 Which of the following is  CORRECT ?

Answer

Lisa can sue for breach of contract: the promise to
keep the offer open for a specific period of time is an option contract.
Therefore, the seller was unable to revoke the offer before the two weeks had
expired.

Answer

Lisa cannot sue for breach: the promise to keep
the offer open is not binding because Lisa has not provided consideration. The
seller is therefore able to revoke the offer, and return the $50.

Answer

Lisa cannot sue for breach: a promise to keep an
offer open for a specific period of time does not apply to the sale or lease of
real estate property, and the seller is therefore able to return the $50.

Answer

Lisa can recover the $50, but she cannot sue for
breach of contract.

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Lisa is thinking of buying a new house. On Saturday, she inspected a large resid...

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