Marcus, a licensed Arkansas salesperson, represents the seller of a home in Jonesboro. He receives two written offers on the same day: Offer A for $310,000 with no contingencies, and Offer B for $320,000 contingent on the sale of the buyer's current home. The seller verbally tells Marcus to 'go ahead and accept Offer A.' Marcus calls the buyer's agent for Offer A and verbally communicates acceptance. Under Arkansas law and AREC rules, which statement is most accurate?
Correct Answer
A) A binding contract may exist, but Marcus should obtain the seller's written acceptance to protect all parties and comply with AREC best practices
While Arkansas courts have recognized verbal contracts in some contexts, AREC rules and best practices strongly require that all real estate contracts, including acceptances, be in writing to be enforceable under the Statute of Frauds as applied in Arkansas. A verbal acceptance may create a disputed contractual situation, but without the seller's written signature, the enforceability of the contract is at serious risk. Marcus should immediately obtain the seller's written acceptance to protect all parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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