A seller in Kailua receives a purchase offer for his fee simple home and responds by crossing out the offered price of $820,000 and writing in $845,000, then signs and returns the document to the buyer's agent. Under Hawaii contract law, this action is best described as:
Correct Answer
B) A counteroffer that terminates the original offer and creates a new offer
Under Hawaii contract law, a response that changes any material term of an offer — such as the purchase price — constitutes a counteroffer. A counteroffer simultaneously rejects the original offer and creates a new offer on the modified terms. The buyer is now the offeree and may accept, reject, or counter the seller's counteroffer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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