Maria submits an offer to purchase a Reno condominium on Monday morning. The listing agent calls Maria's agent Monday afternoon to say the seller is reviewing the offer. On Tuesday morning, Maria's agent calls to say Maria is withdrawing her offer. The seller's agent responds that the seller had already signed the acceptance Monday evening but had not yet notified Maria's agent. Is there a binding contract?
Correct Answer
C) No, because Maria withdrew her offer before the seller's acceptance was communicated to her or her agent
Under Nevada contract law, an offeror may revoke an offer at any time before acceptance is communicated to the offeror. Although the seller signed the acceptance Monday evening, that acceptance was never communicated to Maria or her agent before Maria withdrew on Tuesday morning. Because acceptance must be communicated to create a binding contract, Maria's withdrawal is effective, and no contract was formed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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