Priya submits an offer to purchase a fee simple home in Maui for $975,000 with a 48-hour acceptance deadline. The seller does not respond within 48 hours but calls Priya's broker on the third day to say she accepts. Priya has not yet submitted another offer elsewhere. Under Hawaii contract law, which of the following best describes the legal situation?
Correct Answer
C) The original offer expired at the deadline, and the seller's response is a new offer that Priya may accept or reject
Under Hawaii contract law, an offer that specifies a deadline for acceptance automatically expires at that deadline if not accepted. The seller's response after the 48-hour deadline is not a valid acceptance of the original offer — the original offer has lapsed. The seller's late 'acceptance' is legally treated as a new offer (or counteroffer) on the original terms, which Priya is free to accept or reject.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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