A property is listed for $219,900. 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 listing licensee contacts the buyer's licensee by phone regarding 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 acceptance of a different price and the inclusion of additional items constitutes a counteroffer, which effectively rejects the original offer. For a counteroffer to be validly accepted, it must be done in writing, as required by contract law.
The seller's acceptance of a lower price and the inclusion of the stove and refrigerator represents a counteroffer, which nullifies the original offer. Contract law mandates that any acceptance of a counteroffer must be in writing to be enforceable, thereby rendering this statement accurate.
This statement is incorrect because the seller has the right to make changes to the original offer by submitting a counteroffer. The seller's decision to propose a different price and include additional items demonstrates their authority to modify the terms of the original agreement.
This choice is misleading, as the original offer was not accepted in its entirety. The seller's counteroffer alters key terms, meaning that the original offer is no longer valid. Therefore, there is no signed agreement that constitutes a valid contract until the counteroffer is accepted in writing.
While a licensee can act on behalf of a buyer, the acceptance of a counteroffer must still be executed by the buyer themselves, especially given the legal significance of the change. The buyer's licensee cannot unilaterally sign the counteroffer without explicit authorization from the buyer in this context.
In this situation, the original offer was rejected due to the seller's counteroffer, which necessitates written acceptance to be legally binding. Understanding the requirements for contract modifications and acceptances is crucial in real estate transactions to ensure all parties are in agreement and protected under the law.
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