A buyer submits an offer to purchase a home. The seller responds by changing the closing date and reducing the included appliances. Under Illinois contract law, what is the legal effect of the seller's response?
Correct Answer
A) The seller's response is a counteroffer that rejects the original offer and creates a new offer requiring the buyer's acceptance.
Under general contract law principles applied in Illinois, a response that changes any material term of an offer constitutes a counteroffer, not an acceptance. A counteroffer legally rejects the original offer and substitutes a new offer, which the original offeror must then accept, reject, or counter. The original offer is extinguished and cannot be accepted after a counteroffer is made.
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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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