A buyer submits an offer on a Woodbury property with a 48-hour acceptance deadline. The seller is interested but wants to change the closing date from April 30 to May 15. The seller's agent prepares a written counteroffer with the new closing date and the seller signs it. Before the seller's agent can deliver the counteroffer to the buyer's agent, the buyer calls the seller's agent directly and says, 'I withdraw my offer.' The seller's agent then immediately delivers the signed counteroffer. Under Minnesota contract law, which of the following is MOST accurate?
Correct Answer
B) No contract exists because the buyer withdrew the offer before the counteroffer was communicated
Under Minnesota contract law, an offer may be revoked by the offeror at any time before acceptance is communicated, even if the offer states it will remain open for a specific period (unless supported by consideration as an option contract). The buyer withdrew the offer before the seller's counteroffer was communicated. Additionally, the seller's counteroffer was itself a rejection and new offer — not an acceptance of the buyer's original offer. Since the original offer was revoked before any acceptance was communicated, no contract was formed. The seller's signed-but-undelivered counteroffer has no legal effect.
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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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