Under Montana law, a purchase agreement for residential real property becomes legally binding on the seller when which of the following occurs?
Correct Answer
B) The seller signs the offer and communicates acceptance to the buyer
Under Montana contract law (consistent with general contract principles applied in Montana real estate transactions), a binding contract is formed when the seller accepts the buyer's offer AND communicates that acceptance to the buyer. Mere signature without communication does not create a binding agreement. MCA Title 37, Chapter 51 and Montana contract law require mutual assent communicated between the parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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- → A Rhode Island licensee encounters a listing agreement lets the principal broker retain a portion of deposit money upon buyer default. What should the licensee remember?
- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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