Tom makes a written offer to purchase a home in Meridian, Mississippi for $215,000 with a $5,000 earnest money deposit. The seller counters in writing at $222,000. Tom verbally tells his agent he accepts the counteroffer but never signs the counteroffer document. The seller then receives a higher offer and accepts it. Tom claims he has an enforceable contract. Under Mississippi law, which of the following is correct?
Correct Answer
B) Tom does not have an enforceable contract because his acceptance of the counteroffer was not in writing as required by the Statute of Frauds
Under Mississippi's Statute of Frauds (Miss. Code Ann. §15-3-1), a contract for the purchase of real property must be in writing and signed by the party to be charged. Tom's verbal acceptance of the counteroffer does not satisfy this requirement. Without Tom's written signature on the counteroffer, there is no enforceable contract, and the seller was free to accept the higher offer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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