A seller in Bergen County, New Jersey receives two written offers simultaneously: Offer A for $510,000 with no contingencies, and Offer B for $525,000 with a mortgage contingency. The seller verbally tells both buyers she accepts Offer B. Before any written confirmation is sent, the seller changes her mind and wants to accept Offer A. Which statement best describes the legal situation?
Correct Answer
B) The seller may accept Offer A because verbal acceptance of a real estate contract is not enforceable under New Jersey's Statute of Frauds
Under New Jersey's Statute of Frauds (N.J.S.A. 25:1-13), contracts for the sale of real property must be in writing and signed by the party to be charged in order to be enforceable. A verbal acceptance of a real estate purchase offer does not satisfy the Statute of Frauds and is therefore unenforceable. Because no written acceptance was communicated, no binding contract was formed with either buyer, and the seller retains the right to accept either offer in writing.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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