A buyer in Carmel, Indiana submits a written purchase offer with an acceptance deadline of 5:00 PM on Friday. The seller does not respond until Saturday morning. The buyer then decides she no longer wants the property. Which of the following correctly states the legal status of the transaction?
Correct Answer
C) No binding contract exists because the seller's acceptance was not communicated within the specified deadline
Under Indiana contract law, when an offer specifies a deadline for acceptance, acceptance must be communicated on or before that deadline. The seller's Saturday morning response came after the Friday 5:00 PM deadline, making it legally ineffective as an acceptance. The offer expired at the deadline, so no binding contract was formed. The buyer is free to walk away.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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