Under Indiana law, which of the following actions by a seller would most likely constitute a valid acceptance of a buyer's written purchase offer, thereby creating a binding and enforceable real estate contract?
Correct Answer
B) The seller signs the offer without modification and the signed document is communicated to the buyer
A valid acceptance under Indiana law requires that the offeree (seller) accept the offer exactly as presented — without modification — and that this acceptance be communicated to the offeror (buyer). When the seller signs the offer without any changes and the signed document is delivered to the buyer, all elements of a binding contract are present: offer, acceptance, consideration, and communication. This satisfies both Indiana's Statute of Frauds (IC 32-21-1-1) requiring a written signed agreement and general contract formation requirements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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