Marie submits a written offer to purchase a home in Baton Rouge for $285,000. The seller, Thomas, crosses out the price and writes in $295,000, then signs and returns the document to Marie. Under Louisiana Civil Code principles, what has Thomas done?
Correct Answer
A) Made a counteroffer, which terminates Marie's original offer
Under Louisiana Civil Code Art. 1943, an acceptance that is not in accordance with the terms of the offer is deemed a counteroffer. By changing the price from $285,000 to $295,000, Thomas has not accepted Marie's offer — he has made a counteroffer. This counteroffer simultaneously terminates Marie's original offer, and Marie is now free to accept, reject, or counter Thomas's new proposal.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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.
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