Sarah submits a written offer to purchase a home in St. Louis for $285,000 with a 48-hour acceptance deadline. Before the deadline expires, the seller crosses out the price, writes in $295,000, and signs the document. The seller's agent then delivers the changed document to Sarah's agent. Under Missouri law, what has the seller created?
Correct Answer
D) A counteroffer that terminates Sarah's original offer
Under Missouri contract law, any material change to the terms of an offer — including the purchase price — constitutes a counteroffer, not an acceptance. A counteroffer simultaneously rejects the original offer and proposes new terms. Once the seller made a counteroffer, Sarah's original offer at $285,000 was terminated and no longer exists. Sarah is now the offeree who may accept, reject, or counter the seller's $295,000 counteroffer.
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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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