A buyer submits an offer on a Kentucky property. Before the seller responds, the buyer decides to withdraw. This is an example of:
Correct Answer
B) Revocation of an offer before acceptance
An offer can be revoked by the offeror at any time before it is accepted by the offeree. No contract has been formed, so there is no breach.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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A buyer makes an offer on a South Dakota property. Before the seller accepts, the buyer decides to withdraw. This is an example of:
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A buyer sues a seller who refuses to complete a real estate sale. If the court orders the seller to go through with the transaction rather than pay monetary damages, this remedy is called: