A seller in Irvine lists her home for $720,000. A buyer submits an offer at $700,000 with a 30-day close of escrow. The seller crosses out the 30-day close and writes in 45 days, then signs and returns the document. The buyer signs the modified document without objection. Under California law, at what point was a binding contract formed?
Correct Answer
D) When the buyer signed the seller's counteroffer and communicated acceptance back to the seller
Under California Civil Code §1583-1585, the seller's modification created a counteroffer. A binding contract was formed when the buyer accepted the counteroffer by signing and that acceptance was communicated to the seller or the seller's agent. Both mutual consent and communication of acceptance are required.
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Previous Question
A buyer takes possession of a California property and pays $60,000 toward the purchase price under an oral agreement with the seller. When the seller refuses to complete the sale, the buyer sues to enforce the agreement. The seller raises the Statute of Frauds as a defense. How would a California court MOST likely rule?
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A real estate agent in California prepares a purchase offer for a buyer on a residential property in Bakersfield. The agent explains that for the contract to be valid, the property description must be included. Under California law, what is the MINIMUM acceptable property description in a real estate contract?