Sarah makes a written offer to purchase a single-family home in Worcester, Massachusetts for $450,000. Before the seller responds, Sarah calls her agent and says she wants to revoke her offer. Under Massachusetts contract law, at what point is Sarah's revocation legally effective?
Correct Answer
A) When the revocation is communicated to the seller before the seller has accepted the offer
Under Massachusetts contract law, an offeror may revoke an offer at any time before acceptance, but the revocation is only legally effective when it is actually communicated to the offeree (the seller). Until the seller receives notice of the revocation, the offer remains open and the seller could still create a binding contract by accepting.
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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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