A buyer in Texas pays a $200 option fee but the check is lost in the mail and never reaches the seller. The option period is 10 days and on Day 8 the buyer wants to terminate. What is the buyer's situation?
Correct Answer
A) The buyer may not have a valid option period because the option fee was not delivered to the seller
The option period requires delivery of the option fee to the seller. If the fee was not received by the seller, the buyer may not have a valid option period and therefore may not have the unrestricted right to terminate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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