Jennifer is a licensed Missouri salesperson representing the seller. The buyer submits a written offer, and Jennifer presents it to her seller client. The seller makes several handwritten changes to the offer document and signs it. Jennifer delivers the modified document to the buyer's agent. Under Missouri law, what has the seller created?
Correct Answer
D) A counteroffer, which terminates the buyer's original offer and creates a new offer
Under Missouri contract law, when a party makes any material change to an offer and signs it, this constitutes a counteroffer, not an acceptance. A counteroffer simultaneously rejects the original offer and proposes new terms. The buyer's original offer is terminated, and the buyer now has the option to accept, reject, or counter the seller's new terms. The seller's handwritten changes are material alterations that prevent a mirror-image acceptance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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