Sarah submits a written offer to purchase a home in Little Rock for $285,000. The seller, James, crosses out the price and writes in $295,000, then signs and returns the document to Sarah. Under Arkansas contract law, which statement best describes this situation?
Correct Answer
C) James has made a counteroffer, and Sarah's original offer is terminated
Under the mirror-image rule applied in Arkansas, an acceptance that changes any term of the original offer is treated as a rejection of the original offer and a counteroffer. When James altered the purchase price from $285,000 to $295,000, he rejected Sarah's offer and made a new counteroffer. Sarah's original offer is terminated and she is now free to accept, reject, or counter James's new proposal.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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