Sarah signs an Offer to Purchase a home in Newton, Massachusetts, and pays a $1,000 deposit. The seller accepts the offer. Two weeks later, the parties sign a Purchase and Sale Agreement containing different contingency terms than the original Offer to Purchase. Which document now controls the transaction?
Correct Answer
A) The Purchase and Sale Agreement, because it supersedes and replaces the Offer to Purchase
Under Massachusetts conveyancing practice, the Purchase and Sale Agreement supersedes the Offer to Purchase once it is fully executed. The P&S is the comprehensive governing contract for the transaction, and any terms in the Offer to Purchase that differ from the P&S are replaced by the P&S terms. This is a fundamental principle of Massachusetts real estate contract law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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