Gloria, a seller in Clark County, Ohio, accepts a purchase offer but discovers the next day that she received a much higher offer from another buyer. Gloria wants to cancel the accepted contract and sell to the higher bidder. Under Ohio law, what is Gloria's legal position?
Correct Answer
C) Gloria is bound by the accepted contract and cannot unilaterally cancel to sell to another buyer
Once Gloria accepted the purchase offer and the acceptance was communicated to the buyer, a binding contract was formed under Ohio law. Gloria cannot unilaterally cancel the contract simply because she received a better offer. Doing so would constitute breach of contract, potentially exposing her to damages.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
More Oh Specific Contracts Forms Questions
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- → Grace, a buyer in Ohio, wants to know the difference between rescission and breach of contract. Under Ohio law, what is rescission?
- → Allen, an Ohio buyer, believes the seller's agent made negligent misrepresentations about the property's condition during the sale. Under Ohio law, who may Allen pursue for damages?
- → Oliver, an Ohio buyer, wants to understand the concept of 'mutual rescission' in the context of his purchase agreement. Under Ohio law, what is mutual rescission?
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- → Martha, an Ohio seller, provides a warranty deed to the buyer at closing. After closing, the buyer discovers an existing lien that was not disclosed. Under Ohio deed warranty law, what remedy does the buyer have?
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Chris, an Ohio buyer, signs a purchase agreement that includes a financing contingency. The agreement states Chris must apply for a mortgage within 5 days of contract acceptance. Under Ohio practice, what must Chris do to satisfy this initial requirement?
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