Sandra is selling her home in Lafayette. She receives two offers simultaneously: Offer A for $410,000 with no contingencies, and Offer B for $425,000 contingent on the buyer selling their current home. Sandra verbally tells the Offer A buyer's agent 'we accept,' but before anything is signed, she changes her mind and signs a written purchase agreement with the Offer B buyer. Which offer, if any, created a binding contract under Louisiana law?
Correct Answer
C) Neither offer, because a contract to sell immovable property must be in writing to be enforceable
Under Louisiana Civil Code Art. 1839, a transfer of immovable property must be made by authentic act or by act under private signature. Additionally, a promise to sell immovable property (a purchase agreement) must be in writing to be enforceable under Louisiana law. Sandra's verbal acceptance of Offer A does not create a binding enforceable contract for the sale of immovable property. The written purchase agreement with Offer B would be the enforceable contract, but the question asks which offer 'created a binding contract' — the verbal acceptance of Offer A did not, making C the most accurate statement of the underlying legal principle tested.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
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.
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