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Legal Ease
Legal Ease, Lawyer
Category: Canada Business Law
Satisfied Customers: 99399
Experience:  I am a practicing lawyer and have also been an online professional for 5 years.
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Situation: I was looking at purchasing a franchise business.

Customer Question

Situation:
I was looking at purchasing a franchise business. I submitted a letter of intent to the franchisor and seller. The seller made modifications to the letter of intent, initialed all changes, and signed the letter of intent. I received the updated letter of intent, initialed all changes and returned it to the franchisor for delivery. One day later I was informed that my offer was rejected and they had accepted another offer.
After 7 days, I have learned (through the franchisor) that the seller's other deal fell through and the sellers would like to accept my offer.
My question(s):
1) Is the letter of intent that was signed and initialed by both parties (buyer and seller) still valid even thought I received by email from the franchisor that the my offer was rejected?
2) At this stage, can I submit a new letter of intent or do I have to work with the current letter of intent that has been modified (but originally rejected by the seller)?
Side question:
1) Upon me receiving the signed modified letter of intent and me initialing all changes, was that not a binding agreement?
Submitted: 2 years ago.
Category: Canada Business Law
Expert:  Legal Ease replied 2 years ago.
Once there was an offer and an acceptance of that offer there was a binding contract.The seller had not right to change his mind. You could have and can still seek to hold the seller to that contract. At the same time the seller cannot say your contract is now binding after taking the position it was not. So you would be free to do what you want.

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