Marcus, a licensed South Carolina salesperson, is helping a buyer draft an offer to purchase a home in Columbia. The buyer offers $285,000 for the property. The seller responds in writing that she will accept $292,000 but no other terms will change. What is the legal effect of the seller's response under South Carolina contract law?
Correct Answer
B) The seller's response is a counteroffer that terminates the original offer
Under South Carolina contract law, a response that changes any material term of the original offer — including price — constitutes a counteroffer, not an acceptance. A counteroffer simultaneously rejects the original offer and proposes new terms. The original offer is therefore terminated, and the buyer is under no obligation to accept the seller's counteroffer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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