A buyer submits an offer on a North Las Vegas property. The seller issues a written counteroffer, which the buyer accepts in writing and delivers to the seller's agent. Before the seller's agent can reach the seller to confirm, the seller calls the buyer's agent directly and says 'Tell your client the deal is off — I'm pulling my counteroffer.' The buyer's agent responds that the buyer already accepted the counteroffer in writing. Under Nevada contract law, which of the following is most accurate?
Correct Answer
D) A binding contract was formed because the buyer's written acceptance was delivered to the seller's agent before the seller's attempted revocation reached the buyer or buyer's agent
Under Nevada contract law, the seller's counteroffer was accepted when the buyer's written acceptance was delivered to the seller's agent. The seller's agent, as the seller's authorized representative, has actual authority to receive communications on behalf of the seller — including acceptance of a counteroffer. Once the buyer's acceptance was delivered to the seller's agent, a binding contract was formed at that moment. The seller's subsequent attempt to revoke came after a binding contract already existed, making it legally ineffective. The seller cannot revoke an offer after it has been validly accepted.
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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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