Priya submits an offer on an Ogden home using the Utah REPC on Friday at noon, with an acceptance deadline of Saturday at 6:00 PM. The seller signs and dates a counteroffer on Saturday at 4:00 PM but does not communicate it to Priya's agent until Sunday morning. Priya's agent informs her of the counteroffer on Sunday afternoon. Which statement best describes the legal status of the counteroffer?
Correct Answer
B) The counteroffer is invalid because the original offer expired before it was communicated
Under Utah contract law and the REPC framework, a counteroffer must be communicated to the offeror before the expiration of the original offer's acceptance deadline to be effective. Although the seller signed the counteroffer before 6:00 PM Saturday, it was not communicated to Priya's agent until Sunday morning — after the deadline passed. Since the original offer expired at 6:00 PM Saturday without a timely response, there was no longer a live offer for the seller to counter. The counteroffer delivered on Sunday has no legal effect as a response to the expired offer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
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