On October 30, Casgrain offered to purchase some farm land from Butler for $14 500 with possession in January. On November 15, Butler counteroffered, by telegram, at $15 000. The telegram was delivered to Casgrain’s home on November 20 but Casgrain was absent on a hunting trip. Casgrain’s wife opened the letter and wrote back to Butler saying that her husband was away for 10 days and asked that he hold the deal open until Casgrain could consider the matter. Butler did not respond. On December 10, Casgrain returned home and immediately wired Butler, purporting to accept Butler’s offer of $15 000. The wire was received on December 12. By this time, Butler had already sold the land to someone else. Has Casgrain accepted the offer in time or has it lapsed?
This problem is based on a simplified version Barrick v. Clark, [1951] S.C.R. 177 and focuses on the issue of lapse. More specifically, was Butler’s counteroffer still capable of acceptance on Dec. 12 or had the offer lapsed?