Under the Hawaii Association of Realtors (HAR) standard purchase contract, when a seller issues a counteroffer to a buyer:
Correct Answer
B) The original offer is rejected and the counteroffer becomes a new offer that the buyer may accept, reject, or counter
Under Hawaii contract law and consistent with the HAR standard purchase contract process, a counteroffer rejects the original offer and creates a new offer. The original buyer is no longer bound by their initial offer and may accept, reject, or issue their own counteroffer in response. A binding contract is only formed when one party unconditionally accepts the other's offer or counteroffer in writing within the specified time period. Hawaii's standard HAR purchase contract uses a written counteroffer addendum to document any changes to terms.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
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.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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