A buyer submits an offer using the C.A.R. RPA for a single-family home in Anaheim. The buyer's agent presents the offer to the listing agent on Tuesday at 2:00 PM. The offer states it will expire on Thursday at 5:00 PM. The seller signs the acceptance on Wednesday at 10:00 AM but does not communicate it until Thursday at 1:00 PM. Under the C.A.R. RPA, when is the contract formed?
Correct Answer
C) Thursday at 1:00 PM when the buyer receives notification of acceptance
Under the C.A.R. RPA, a binding contract is formed when the buyer (or buyer's agent) receives notification or personal delivery of the seller's signed acceptance. The mere signing by the seller does not complete contract formation until the acceptance is communicated to the buyer's side.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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.
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