A buyer submits an offer on a Salem, Oregon home with a deadline of 5:00 PM on Friday for the seller to accept. At 4:45 PM on Friday, the seller signs and dates the acceptance form but does not notify the buyer until 6:00 PM. Under Oregon contract principles, is there a binding contract?
Correct Answer
A) No, because acceptance must be communicated to the buyer before the offer deadline to be effective.
Under Oregon contract law, acceptance is not effective until it is communicated to the offeror. Merely signing an acceptance form does not create a binding contract if the offeror is not notified within the stated deadline. Because the buyer's offer expired at 5:00 PM and the seller did not communicate acceptance until 6:00 PM, the offer had already lapsed and no contract was formed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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