The TREC contract is executed with a closing date of May 15. On May 5, the buyer's lender requests a 10-day extension. The buyer proposes an amendment changing the closing date to May 25. The seller:
Correct Answer
C) May accept or reject the proposed amendment—amendments require mutual agreement
Amendments require mutual agreement. The seller is not obligated to accept any amendment, including a closing date extension. The seller may accept, reject, or propose a counter-amendment with different terms.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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