A buyer makes an offer on a property through the listing licensee. The buyer's offer has a 24-hour time limit included. The licensee presents the offer and the seller accepts it. The licensee returns to the firm's office and finds a dated and timed fax from the buyer stating his offer is withdrawn. Which of the following is true in this situation?

This statement is incorrect because a buyer can withdraw their offer at any time before it has been accepted by the seller, regardless of any time limits specified in the offer. The 24-hour time limit only applies to the seller's decision-making period and does not restrict the buyer's right to withdraw.

This choice is not valid as no binding contract exists until the seller accepts the offer. Since the buyer withdrew the offer before acceptance, there is no breach of contract to pursue in a legal sense. Therefore, the seller has no grounds to sue.

This option is also incorrect because the licensee, acting as an agent, does not have the authority to pursue legal action on behalf of the seller or themselves in this situation. As with the seller, there is no contract to breach since the offer was withdrawn prior to acceptance.