Sarah, a licensed associate broker in Maine, is representing a buyer who has signed a purchase and sale agreement for a lakefront cottage. The seller's designated broker calls Sarah to say the seller wants to change the closing date before signing. At this point, what is the legal status of the transaction?
Correct Answer
C) No binding contract exists because the seller has not yet signed and communicated acceptance
Under Maine law, no binding purchase and sale agreement exists until all parties have signed the written agreement and acceptance has been communicated. Since the seller has not yet signed, the offer remains open and the seller may propose modifications, counter-offer, or decline without legal consequence.
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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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