Under the Utah REPC, when a seller receives a buyer's offer and wishes to accept it without any changes, which of the following actions correctly creates a binding contract?
Correct Answer
B) The seller signs the offer in the designated acceptance section and communicates acceptance to the buyer
Under Utah contract law and the REPC process, a binding contract is formed when the seller signs the offer in the designated acceptance section AND communicates that acceptance to the buyer (or buyer's agent). Both elements — written signature and communication — are required. The Utah REPC provides a specific acceptance section for the seller's signature and the date and time of acceptance.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
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.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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