A seller in Kirkland, Washington receives a full-price offer with no contingencies. Before signing the acceptance, the seller adds a clause requiring the buyer to use the seller's preferred title company. The buyer refuses this new clause. Which of the following accurately describes the legal status of the transaction?
Correct Answer
B) The seller's addition of the title company clause constitutes a counteroffer, and the buyer is free to reject it.
Under Washington contract law and the mirror image rule, an acceptance must conform exactly to the terms of the offer. When the seller added a new clause (requiring use of a specific title company) that was not in the original offer, the seller's response is legally a counteroffer — not an acceptance — regardless of the fact that all financial terms were accepted. A counteroffer terminates the original offer and creates a new offer. The buyer is under no obligation to accept and is free to reject, counter, or walk away.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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.
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