A buyer submits an offer to purchase a townhome in Howard County with a deadline stating the offer expires at 5:00 PM on Friday. At 4:45 PM Friday, the seller signs the offer and the listing agent emails a signed copy to the buyer's agent. The buyer's agent is in a meeting and does not read the email until Saturday morning. Under Maryland contract law, which of the following best describes the situation?
Correct Answer
C) A binding contract was formed because the acceptance was transmitted before the deadline
Under Maryland contract law, acceptance is effective when properly communicated to the offeror or the offeror's authorized agent. The listing agent transmitted the signed acceptance via email before the 5:00 PM Friday deadline, sending it to the buyer's agent (who is the buyer's authorized representative). Transmission to the buyer's authorized agent within the offer period constitutes timely communication of acceptance, forming a binding contract even if the agent did not personally read the email until later.
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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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