Maria submits a written offer to purchase a home in Richmond, Virginia. The seller reviews the offer and signs it without making any changes. At what point does a binding purchase contract exist in Virginia?
Correct Answer
B) When the seller signs the offer and communicates acceptance to Maria or her agent
Under Virginia contract law, a binding contract is formed when the offeree (seller) accepts the offer by signing it and communicating that acceptance to the offeror (buyer) or the buyer's agent. This moment of communicated acceptance creates a ratified contract. Both offer and acceptance must be present for mutual assent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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