During a California residential transaction using the C.A.R. RPA, the buyer and seller have signed all documents, but the buyer's agent has not yet delivered the signed acceptance to the buyer. At this point, is there a binding contract?
Correct Answer
B) No, under the C.A.R. RPA a contract is not formed until written acceptance is delivered to the buyer or buyer's agent
Under the C.A.R. RPA, a binding contract is formed only when the signed acceptance is communicated (delivered) to the offeror or the offeror's agent. Until delivery of acceptance, either party may withdraw. This is consistent with California contract law principles regarding communication of acceptance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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