A buyer submits an offer on a Park City home using the Utah REPC. The seller's agent calls the buyer's agent and verbally states, 'The seller accepts your offer exactly as written.' The seller has not yet signed the written acceptance. The buyer immediately begins scheduling inspectors and notifies her lender. Two hours later, the seller's agent calls back and says the seller has changed her mind and is rejecting the offer. Which statement best describes the legal situation under Utah law?
Correct Answer
D) No binding contract was formed because real estate contracts in Utah must be in writing to be enforceable
Under Utah's Statute of Frauds (Utah Code Ann. § 25-5-1), contracts for the sale of real property must be in writing and signed by the party to be charged in order to be enforceable. A verbal acceptance by the seller's agent, even if clearly communicated, does not satisfy the writing requirement. Therefore, no enforceable contract was formed, and the seller may withdraw before signing the written acceptance. The buyer's actions in scheduling inspectors do not override the statutory writing requirement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
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