A property is listed for $218,000. An offer of $210,000 is submitted to the listing licensee. The offer includes a free-standing stove and refrigerator. The seller accepts the price and the refrigerator, but is not willing to leave the stove. The listing licensee makes the change in the contract to exclude the stove. The seller signs and initials the change. The buyers orally accept the change. Which of the following is true regarding this situation?
The original offer was rejected and the seller's counteroffer must be accepted in writing.
In this scenario, the seller's decision to exclude the stove from the acceptance constitutes a counteroffer, which effectively rejects the original offer. For the counteroffer to be valid, it must be accepted in writing by the buyer, as verbal acceptance does not satisfy the legal requirements for a binding contract.
This statement is accurate because the seller modified the terms of the original offer by excluding the stove, which constitutes a counteroffer. Since the original offer was not accepted in its entirety, it is considered rejected. Legal principles require that counteroffers be accepted in writing to form a valid contract.
This statement is incorrect because the seller has the right to propose changes to the offer, including modifications or exclusions of items like the stove. The seller’s ability to negotiate terms is a fundamental aspect of contract law, allowing them to respond to offers with counteroffers.
This statement is false, as a valid contract cannot exist without mutual agreement on all terms, including the items included in the offer. The seller's exclusion of the stove means that the original offer was not fully accepted, and therefore, no valid contract has been formed at this point.
This is incorrect because the buyer's licensee cannot make changes or sign documents on behalf of the buyer without explicit written authority. The buyer must provide written acceptance for the counteroffer to be valid, and the licensee cannot circumvent this requirement.
In this case, the seller's exclusion of the stove from the acceptance transforms the original offer into a counteroffer, which the buyer must accept in writing to establish a valid contract. All changes to the terms must be documented, ensuring that all parties have a clear understanding and agreement on the contract's terms. Verbal acceptance is insufficient in this context, highlighting the importance of written agreements in real estate transactions.
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