Good Day to All,

This questions pertains to contract law, involving sale of property.

In the instance Person A wants to Buy Person B's property.

B told Person A that he would be selling it at $500,000 (Person A purchased the property at $400,000)

Person A accepts and both parties proceeds to draft a contract, an Option to Purchase.

An Option to Purchase stipulates Person B to make a 1% deposit of the property price, and giving him 14 days to decide if he wants to purchase the property.

Person B made the deposit as per Option to Purchase.

3 days later, Person A found out that property was worth $1.2 million and accused Person B of cheating him, and wanted to cancel the contract.

There are few questions

Was the Option to Purchase a valid contract?

Can person A cancel the contract at the point where he found out that the property was valued way above $500,000?

What would happen if Person B exercised the option and completed the contract?

What will happen if Person B fails to exercise the Option in time?

Please advise me with regards to the 4 questions posed. Thank You very much.