A buyer and seller sign a purchase contract for a home in Middlesex County, New Jersey. During the attorney review period, the seller's attorney sends a letter approving the contract but modifying the closing date and adding a home sale contingency. The buyer's attorney responds, approving the closing date change but rejecting the home sale contingency. The attorney review period then expires. What is the status of the contract?
Correct Answer
C) The contract is binding with the modified closing date only, because the buyer's attorney approved that specific modification
Under New Jersey's attorney review period rules, modifications proposed by one attorney become part of the contract only if affirmatively accepted by the other attorney. In this scenario, the buyer's attorney expressly approved the closing date change, making that modification binding. The buyer's attorney rejected the home sale contingency, so that modification was not incorporated. The contract therefore is binding with the modified closing date but without the home sale contingency — a partial acceptance of proposed modifications is valid and enforceable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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.
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