Marcus, a Virginia licensee, presents his buyer client's offer of $385,000 to the listing agent on Friday at 4:00 PM. The offer states it expires at 5:00 PM on Saturday. The seller signs and returns the accepted offer at 6:00 PM on Saturday. The buyer immediately notifies Marcus he no longer wants the property. Which outcome is correct under Virginia law?
Correct Answer
D) No binding contract exists because the seller's acceptance came after the offer's stated expiration time
An offer may specify a deadline for acceptance. Under Virginia contract law, if the offeror sets an expiration time, acceptance must be communicated before that deadline to form a binding contract. Here, the offer expired at 5:00 PM Saturday, and the seller's acceptance was not communicated until 6:00 PM Saturday — one hour after expiration. The late acceptance is legally a counteroffer, not a valid acceptance, so no binding contract was formed.
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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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