Angela submits a written offer to purchase a condominium in Los Angeles for $475,000. The seller responds by changing the price to $490,000 and signing the modified document. Under California contract law, what has the seller created?
Correct Answer
A) A counteroffer that terminates Angela's original offer
Under California Civil Code §1585, an acceptance must be absolute and unqualified. When the seller changed the price, this constituted a counteroffer under California contract law, which simultaneously rejected and terminated Angela's original offer. Angela is now free to accept, reject, or counter the seller's counteroffer.
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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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