A buyer submits an offer on a Colorado home. The seller, instead of signing the CREC Contract to Buy and Sell Real Estate, sends back a signed document on the seller's attorney's letterhead accepting all terms of the offer but adding one additional condition. The buyer's broker is unsure whether this creates a binding contract. Which of the following is the most accurate analysis under Colorado law?
Correct Answer
C) The attorney-drafted document constitutes a counteroffer; a binding contract will exist only if the buyer accepts all terms in writing on a CREC-approved form or another attorney-drafted document
Under Colorado law, attorneys may draft alternative contract language in lieu of CREC-approved forms. However, the seller's response added an additional condition, which means it is a counteroffer — not an acceptance — regardless of the form used. A counteroffer rejects the original offer and presents new terms. For a binding contract to exist, the buyer must accept all terms of the counteroffer in writing. The buyer may accept on a CREC-approved form or on another attorney-drafted document, but the acceptance must be in writing and must encompass all terms including the additional condition.
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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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