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.
When the seller accepted the offer of $210,000 but excluded the stove, this constituted a counteroffer. The original offer was modified, and thus the buyer must accept the counteroffer in writing for it to create a valid contract.
This statement is accurate because the seller's modification of the original offer by excluding the stove effectively rejected the original terms. A counteroffer must be formally accepted, which requires written consent from the buyer to create a binding agreement.
This choice is incorrect as the seller is entitled to negotiate the terms of the offer, including making changes. The seller's decision to exclude the stove is a legitimate exercise of their right to counter the offer.
This statement is false because the acceptance of the offer was contingent upon a change (the exclusion of the stove) that the buyer has not accepted in writing. Without the buyer's written acceptance of the counteroffer, no valid contract exists.
This option is incorrect since the buyer's licensee cannot unilaterally accept a counteroffer unless the buyer has granted explicit authority. A signature from the buyer is necessary to validate the acceptance of the modified terms.
In contract law, a counteroffer nullifies the original offer, requiring acceptance of the new terms in writing to form a valid contract. In this scenario, the seller's exclusion of the stove modified the original offer, necessitating the buyer's written acceptance of the counteroffer. As a result, without this formal acceptance, no legally binding agreement has been established.
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