Marcus submits a written offer to purchase a home in Provo, Utah using the REPC. The seller signs and returns a counteroffer with a higher purchase price. Before Marcus responds to the counteroffer, the seller calls and says she is withdrawing the counteroffer and will accept Marcus's original offer instead. Which statement correctly describes this situation under Utah law?
Correct Answer
B) The seller can withdraw the counteroffer, but the original offer has already been terminated
Under Utah contract law, the seller's counteroffer terminated Marcus's original offer. Even though the seller now wishes to accept the original terms, she cannot unilaterally revive an offer that was extinguished by her own counteroffer. The seller may withdraw her counteroffer before Marcus accepts it, but doing so does not resurrect the original offer. A new agreement would require Marcus to resubmit his original terms as a new offer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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