A seller in Ann Arbor receives two offers on the same day. The seller verbally accepts the first offer over the phone but has not yet signed anything. The seller then receives a higher second offer and decides to accept it in writing instead. Under Michigan law, which statement is most accurate?
Correct Answer
D) The written acceptance of the second offer is enforceable, and the verbal acceptance is not, due to Michigan's Statute of Frauds
Michigan's Statute of Frauds (MCL 566.108) requires contracts for the sale of real property to be in writing and signed by the party to be charged. A verbal acceptance of a real estate purchase offer is not enforceable in Michigan. Therefore, the seller's verbal acceptance of the first offer creates no binding contract. The written acceptance of the second offer, once communicated to the second buyer, creates an enforceable contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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