Question 2: (10 Marks)

Ahmad owned Regent Arms, an apartment block in downtown Vancouver, which he wished to sell.He knew that Felicity, a real estate developer, was interested in such properties.Therefore, on Thursday, he faxed his offer to her: "I will sell Regent Arms to you for $5,000,000.00.If you wish to accept this offer, please do so as soon as possible.I promise that I will not make a similar offer to anyone else while you are considering this proposal."Felicity was very interested in the offer but received it just as she was about to leave for a meeting in Medicine Hat.When she returned the following Monday, she immediately faxed a letter purporting to accept Ahmad's offer.He replied that since he had not heard from her earlier, he had sold Regent Arms to another party on Saturday.Felicity now claims that because Ahmad had done nothing to communicate the revocation of his offer, his offer was still open for acceptance when she sent her fax to him.

Is she correct?Has the offer lapsed or been revoked?Explain the arguments that Ahmad and Felicity might make if their dispute goes to court.