A buyer and seller execute the TREC contract. Later, they execute Amendment #1 extending the option period. Then they execute Amendment #2 that inadvertently includes language conflicting with Amendment #1 regarding the option period end date. At closing, a dispute arises over which option period end date applies. Under Texas law:
Correct Answer
B) Amendment #2 controls because the most recent expression of the parties' agreement prevails on conflicting terms
Under Texas contract law, when multiple amendments conflict, the most recent amendment generally prevails because it represents the parties' most recent expression of agreement. Amendment #2 would control on the conflicting 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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