A seller in Las Vegas receives two offers simultaneously: Offer A for $500,000 with no contingencies, and Offer B for $510,000 with a financing contingency. The seller's agent, acting on the seller's instructions, issues a written counteroffer to Offer A at $505,000 while the seller is still reviewing Offer B. Before the Offer A buyer responds, the seller decides to accept Offer B as submitted. Which of the following correctly describes the seller's legal position?
Correct Answer
A) The seller may accept Offer B because no binding contract exists until the Offer A buyer accepts the counteroffer
A counteroffer is itself an offer — it creates no binding contract until the other party accepts it. Because the Offer A buyer has not yet accepted the seller's counteroffer, no binding contract exists with the Offer A buyer. The seller remains free to negotiate with or accept Offer B. If the Offer A buyer subsequently accepts the counteroffer after the seller has already accepted Offer B, the seller would face potential liability, but as of the moment described, the seller is legally free to accept Offer B. Nevada real estate practice recognizes that sellers may issue counteroffers and simultaneously entertain other offers, provided they do not create two binding contracts.
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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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