Maria, a Broker Associate in Colorado, receives a written offer from her buyer client on a Denver home. The seller verbally agrees to all terms but has not yet signed the contract. At this point, which of the following best describes the status of the agreement?
Correct Answer
C) No binding contract exists because acceptance must be in writing and communicated
In Colorado, for a real estate contract to be enforceable under the Statute of Frauds, acceptance must be in writing and must be communicated to the offeror. A verbal acceptance by the seller does not create a binding contract. The CREC Contract to Buy and Sell Real Estate requires a written signature from all parties for a valid, enforceable agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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