A buyer submits a written offer on a home in Lafayette, Indiana. Under Indiana contract law and IREC rules, all of the following actions would extinguish the buyer's offer EXCEPT:
Correct Answer
A) The seller signs the offer without modification and delivers the signed copy to the buyer's broker
Option A is the correct answer to this EXCEPT question because it is the one action that does NOT extinguish the offer; it creates a binding contract. When the seller signs the offer without modification and delivers it to the buyer's broker, acceptance has been properly communicated and a binding contract is formed. The offer is fulfilled, not terminated without contract formation. Options B, C, and D describe events that terminate the offer.
Why This Is the Correct Answer
Why the Other Options Are Wrong
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Real World Application in Contracts
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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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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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