Under Oregon contract law, when a seller responds to a buyer's offer by changing one of the material terms, such as the purchase price, what is the legal effect of that response?
Correct Answer
D) The seller's response constitutes a counteroffer, which terminates the original offer.
Under Oregon contract principles (consistent with ORS Chapter 72 and general common law applied in Oregon real estate), a counteroffer is a rejection of the original offer and simultaneously creates a new offer. The original offer is legally terminated and cannot be accepted by the buyer after the counteroffer is made, unless the offeror reinstates it.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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