Under Missouri contract law, when does a real estate purchase offer become a binding contract?
Correct Answer
A) When the seller signs the offer and the buyer is notified of that acceptance
Under Missouri contract law, a binding contract is formed when the seller accepts the offer AND that acceptance is communicated back to the buyer (or the buyer's agent). Acceptance is not effective until it is actually communicated to the offeror. This mutual assent — offer plus communicated acceptance — creates the meeting of the minds required for an enforceable contract under Missouri general contract principles applied to real estate transactions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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.
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