A Connecticut residential purchase agreement has been signed by both parties. Which of the following events would NOT automatically terminate the purchase agreement under Connecticut law?
Correct Answer
D) The seller receives a higher offer from a third party after the purchase agreement is fully executed
Receiving a higher offer from a third party after a purchase agreement is fully executed does NOT automatically terminate the contract. A fully executed purchase agreement is a binding contract, and the seller's receipt of a better offer is not a legal basis for termination. The seller would be in breach if they attempted to sell to the third party. Only contractually or legally recognized events can terminate a binding purchase agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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