A Maryland purchase agreement for a home in Montgomery County includes a home inspection contingency. The buyer's inspector identifies several issues, and the buyer submits a written addendum requesting $15,000 in seller credits. The seller rejects the request and makes a counteroffer of $5,000 in credits. The buyer does not respond within the time specified in the counteroffer. Under Maryland contract law, what is the status of the original purchase agreement?
Correct Answer
D) The seller must honor the original contract terms without any credits because the counteroffer expired
Under Maryland contract law, when a buyer submits an addendum requesting repairs or credits under a home inspection contingency, and the seller responds with a counteroffer that the buyer does not accept within the specified time, the counteroffer expires. Critically, the original purchase agreement remains in effect — the inspection contingency negotiation is a separate process. The seller's counteroffer does not modify the original contract unless accepted. The buyer must either accept the seller's terms, negotiate further, or exercise the inspection contingency to void the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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