A buyer's agent in Nashua, NH presents an offer on behalf of her client. The offer includes a deadline stating, 'This offer expires at 5:00 PM on Friday.' The seller's agent calls the buyer's agent at 6:30 PM on Friday to say the seller has decided to accept the offer. Which of the following correctly describes the legal status of this communication?
Correct Answer
C) The seller's response is a counteroffer because the original offer has already expired
Under New Hampshire contract principles, an offer that specifies a deadline for acceptance automatically expires at that deadline. Once 5:00 PM on Friday passed without acceptance, the offer was no longer open. The seller's 6:30 PM communication cannot constitute acceptance of a terminated offer. At best, it functions as a new offer (effectively a counteroffer) from the seller, which the buyer may choose to accept or reject.
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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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