A buyer in Essex County, New Jersey makes an offer on a single-family home. The seller's agent calls the buyer's agent and says the seller has accepted the offer. The next morning, before any written confirmation is received, the seller calls her agent and says she changed her mind and wants to reject the offer. Which statement is most accurate under New Jersey law?
Correct Answer
B) No binding contract was formed because real estate contracts must be in writing under the Statute of Frauds, so the seller may reject the offer
Under New Jersey's Statute of Frauds (N.J.S.A. 25:1-13), a contract for the sale of real property must be in writing and signed by the party to be charged to be enforceable. A verbal acceptance — even if communicated through agents — does not satisfy the Statute of Frauds. Because no written, signed contract exists, the seller may reject the offer without legal liability for breach of contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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