A buyer submits a written purchase offer on a Fargo, North Dakota home for $285,000. The seller counters in writing at $295,000. Before the buyer responds, the seller calls the listing agent and says he wants to withdraw the counteroffer and accept the original $285,000 offer instead. Under North Dakota contract law, what is the status of the original $285,000 offer?
Correct Answer
A) The original offer was extinguished when the seller issued the counteroffer and cannot be revived
Under established contract law principles applied in North Dakota, a counteroffer operates as a rejection of the original offer and simultaneously creates a new offer. Once the seller issued the $295,000 counteroffer, the buyer's original $285,000 offer was legally extinguished. The seller cannot unilaterally revive a rejected offer. The seller may only accept the counteroffer if the buyer agrees, or the parties must negotiate a new agreement.
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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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