Marcus is a licensed sales associate in Kentucky working under a principal broker. He helps a buyer draft an offer to purchase a home in Frankfort for $198,000 with a 48-hour acceptance deadline. The seller does not respond within 48 hours. On the morning of the 49th hour, the seller signs and returns the contract. Under Kentucky contract law, what has occurred?
Correct Answer
D) The seller's late signing constitutes a counteroffer, which the buyer may accept or reject
Under Kentucky contract law, when an offer includes a specified acceptance deadline, the offer expires at that deadline. If the seller attempts to accept after the deadline has passed, the original offer is no longer open for acceptance. The seller's late signed acceptance is treated as a new counteroffer — not a valid acceptance — which the buyer is free to accept or reject. The buyer is under no obligation to proceed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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