Under Maryland contract law, when does an offer to purchase residential property become a binding contract?
Correct Answer
D) When the seller signs the offer and the buyer is notified of that acceptance
Under Maryland contract law, a binding contract is formed when the seller accepts the offer by signing it AND the buyer receives notice of that acceptance. Both elements — execution by the offeree and communication of that acceptance back to the offeror — are required for a contract to be enforceable. This is consistent with the general Maryland common law principle that acceptance is not effective until communicated.
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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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