A Florida licensee prepares a sales contract for a residential property. The buyer signs the contract and includes an earnest money deposit check. The seller reviews the contract, crosses out the closing date, writes in a new date 30 days later, initials the change, and signs the contract. What is the legal status of this transaction?
Correct Answer
B) The seller made a counteroffer that the buyer must accept or reject
Correct: B - When the seller makes material changes to the contract terms (such as the closing date) and signs it, this constitutes a counteroffer that must be accepted or rejected by the buyer. Why not A: A binding contract requires mutual assent to all terms; the seller's changes created new terms. Why not C: The contract is not void; it's a valid counteroffer. Why not D: There is no automatic acceptance period in Florida real estate contracts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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.
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A buyer and seller in Florida agree to extend the closing date by 10 days. The original contract had a 'time is of the essence' clause. What must they do to make this extension valid?
- → A Florida real estate licensee prepares a purchase agreement that includes a financing contingency. The buyer fails to apply for financing within the specified timeframe. What is the legal consequence under Florida contract law?
- → Under Florida law, all of the following would typically survive the closing of a real estate purchase agreement EXCEPT:
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Audit memo Harbor Case highlights this Florida rule. In a Tallahassee transaction, a closing coordinator wants the Florida rule on offer. Which statement is correct?
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A 17-year-old inherits a property in Florida and wants to sell it. The minor enters into a sales contract with a buyer. Under Florida law, what is the status of this contract?