Under Illinois contract law and practice, which of the following statements about earnest money disputes and remedies is NOT accurate?
Correct Answer
A) A contract amendment affecting earnest money disbursement is binding only if signed by the listing broker alone, without requiring the buyer's or seller's signature.
Option A is NOT accurate. Under Illinois law and standard contract practice, amendments to a real estate contract must be signed by all parties bound by the original contract — typically both buyer and seller — not by the listing broker alone. A broker has no unilateral authority to bind the parties to a contract modification. This is consistent with the Illinois Real Estate License Act of 2000 (225 ILCS 454) and general contract law requiring mutual assent for modifications.
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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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