A buyer in Hawaii submits an offer to purchase a residential property. The seller's agent presents the offer to the seller, who makes a counteroffer by changing the closing date. The buyer verbally tells the seller's agent he accepts the counteroffer but does not sign the modified document. The seller then changes her mind and withdraws the counteroffer. Under Hawaii law, is there a binding contract?
Correct Answer
C) No, because real estate contracts in Hawaii must be in writing to be enforceable under the Statute of Frauds
Under Hawaii's Statute of Frauds (HRS §656-1), contracts for the sale of real property must be in writing and signed by the party to be charged in order to be enforceable. A verbal acceptance of a real estate counteroffer does not satisfy this requirement. Because the buyer's acceptance was only verbal and the modified document was not signed, no enforceable written contract was formed, and the seller may withdraw the counteroffer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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.
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