A buyer submits an offer on a Henderson home with a deadline stating the offer expires at 5:00 PM on Friday. The seller's agent delivers a signed acceptance to the buyer's agent at 4:55 PM on Friday. However, the buyer had verbally told his agent at 4:30 PM that he was no longer interested and considered the offer withdrawn. The buyer's agent did not notify the seller's agent of the withdrawal before 4:55 PM. Which of the following is most accurate under Nevada contract law?
Correct Answer
D) A binding contract was formed because the seller's acceptance was delivered before the offer's stated deadline
Under Nevada contract law, a revocation of an offer is only effective when communicated to the offeree (or offeree's agent). The buyer's verbal statement to his own agent is not a revocation communicated to the seller's side. Because the buyer's agent did not relay the withdrawal to the seller's agent before 4:55 PM, the seller had no knowledge of any revocation. The seller's valid acceptance delivered at 4:55 PM — before the 5:00 PM deadline — created a binding contract. The buyer's uncommunicated intent to withdraw is legally ineffective.
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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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