Marcus, a licensed Maryland salesperson, presents an offer on behalf of his buyer client to purchase a home in Annapolis for $380,000. The listing agent calls Marcus and says, 'The seller loves the offer and will sign it tonight.' Before the seller signs, Marcus receives a second call informing him the seller has decided to reject the offer. The buyer insists a contract was formed when the listing agent communicated the seller's intent to accept. Is the buyer correct under Maryland law?
Correct Answer
C) No, because acceptance requires the seller's written signature and notification to the buyer
Under Maryland law, a contract for the sale of real property must satisfy the Statute of Frauds, requiring a written agreement signed by the party to be charged (here, the seller). An oral statement by the listing agent expressing the seller's intent to accept does not constitute valid acceptance. The seller must actually sign the written offer, and that acceptance must be communicated to the buyer before a binding contract is formed. Intent to accept is not the same as acceptance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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