A buyer in Colorado makes an offer on a residential property and specifies in the CREC Contract to Buy and Sell Real Estate that the offer will expire at midnight on Saturday. The seller signs and communicates acceptance at 11:45 PM on Saturday. The buyer then claims no contract was formed because it was too late at night. Which of the following is correct?
Correct Answer
A) A binding contract was formed because acceptance was communicated before the midnight deadline
Under Colorado contract law and the CREC Contract to Buy and Sell Real Estate, an offer is valid until the stated deadline. If the offer specifies midnight on Saturday, acceptance communicated at 11:45 PM on Saturday is timely and creates a binding contract. There is no CREC rule prohibiting acceptance after business hours, and the buyer's preference is irrelevant once a valid deadline is set and met.
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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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