A buyer in Ramsey County, Minnesota makes an offer on a home. The seller responds with a counteroffer changing the closing date and purchase price. Before the buyer accepts the counteroffer, the seller calls the buyer's agent and says the seller is withdrawing the counteroffer. Under Minnesota contract law, is the seller's withdrawal effective?
Correct Answer
A) Yes, because a counteroffer can be revoked at any time before the offeree communicates acceptance
Under general contract law principles applicable in Minnesota, an offer (including a counteroffer) can be revoked by the offeror at any time before the offeree communicates acceptance. Once the seller communicated the withdrawal before the buyer accepted, the counteroffer is effectively revoked and no contract is formed. The buyer's agent receiving the notice of withdrawal is sufficient, as the agent acts on the buyer's behalf.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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.
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