Under Washington contract law, when a seller responds to a buyer's offer by changing one of the material terms, such as the purchase price, what is the legal effect of that response?
Correct Answer
B) The seller's response constitutes a counteroffer, which terminates the original offer.
Under basic contract principles applied in Washington real estate transactions, a counteroffer is a rejection of the original offer and a new offer made by the offeree. When the seller changes any material term — such as price, closing date, or contingencies — the original offer is legally terminated and cannot be accepted by the buyer afterward. The buyer must now accept, reject, or counter the seller's counteroffer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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