A Missouri listing broker receives two simultaneous offers on the same Springfield property: Offer A for $310,000 with no contingencies, and Offer B for $315,000 with a financing contingency. The seller asks the listing broker to accept Offer A and present a counteroffer to Buyer B at the same time, hoping to keep both deals alive. Under Missouri law and MREC rules, what is the broker's most appropriate course of action?
Correct Answer
B) Advise the seller that accepting one offer while countering another simultaneously creates conflicting contractual obligations and could expose the seller to legal liability
Under Missouri law and MREC professional conduct standards, a listing broker has a fiduciary duty to advise the seller honestly about the legal implications of their proposed course of action. Accepting Offer A while simultaneously issuing a counteroffer to Buyer B could result in two binding contracts on the same property if Buyer B accepts the counteroffer — exposing the seller to breach of contract liability with one of the buyers. The broker's duty is to inform the seller of this risk and recommend a legally sound strategy, such as accepting one offer and keeping the other as a backup with the buyer's consent, or using a multiple-offer disclosure process.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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Specific performance in North Dakota:
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