Marcus and Linda are selling their Indiana home. A buyer submits a written offer, and the sellers respond with a counteroffer changing the closing date. Before the buyer accepts the counteroffer, the sellers decide they want to accept the original offer instead. Under Indiana contract law, which of the following is correct?
Correct Answer
C) The sellers' counteroffer terminated the original offer, so it can no longer be accepted
Under Indiana contract law principles (consistent with the Restatement of Contracts), a counteroffer operates as a rejection of the original offer and simultaneously creates a new offer. Once the sellers issued a counteroffer, the original offer was legally terminated and cannot be accepted. The only enforceable offer now is the sellers' counteroffer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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