Under Arkansas contract law, which element must be present for an offer to become a binding contract upon acceptance?
Correct Answer
D) The offer must be communicated to the offeree and accepted without modification
Under Arkansas contract law and general contract principles applied in Arkansas courts, a valid offer becomes a binding contract when it is communicated to the offeree and accepted without any modification. Any change to the terms constitutes a counteroffer, not an acceptance, and terminates the original offer. This mirrors the mirror-image rule recognized in Arkansas.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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