A seller in Pasadena signs a C.A.R. Seller Counter Offer (SCO) changing the price from the buyer's offered $550,000 to $565,000 and giving the buyer 3 days to respond. The next morning, before the buyer responds, the seller receives a higher offer from another buyer. Can the seller withdraw the counter offer?
Correct Answer
A) Yes, the seller may withdraw the counter offer at any time before the buyer communicates acceptance
Under California contract law, a counter offer (like any offer) may be withdrawn at any time before acceptance is communicated by the offeree. The C.A.R. SCO form acknowledges this principle. The seller must deliver written withdrawal to the buyer or buyer's agent before the buyer delivers written acceptance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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