Maria submits a written offer to purchase a home in Tacoma. The seller reviews the offer and crosses out the offered price of $450,000, writes in $465,000, and signs the document. The seller then delivers this document back to Maria. Under Washington contract law, what has the seller created?
Correct Answer
B) A counteroffer that terminates Maria's original offer
Under Washington contract law (consistent with general contract principles applied in Washington courts), when a seller materially changes the terms of a buyer's offer — such as altering the purchase price — this constitutes a counteroffer. A counteroffer simultaneously rejects the original offer and proposes new terms. Maria's original offer is legally terminated and she is under no obligation to accept the seller's counteroffer.
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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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