A buyer in Bellevue makes an offer on a home contingent on the sale of her current residence. The seller counters, removing the home sale contingency but keeping all other terms. The buyer signs the counteroffer. Three days later, the buyer's current home falls through and she cannot secure financing without selling it. The buyer claims she never agreed to remove the contingency and seeks to void the contract. What is the likely legal outcome?
Correct Answer
B) The buyer is bound by the signed counteroffer that removed the contingency, regardless of her current financial situation.
When the seller issued a counteroffer removing the home sale contingency, that counteroffer terminated the buyer's original offer and presented new terms. The buyer signed the counteroffer, thereby accepting the modified terms — including the removal of the contingency. A signed written acceptance creates a binding contract in Washington. The buyer's subsequent financial difficulties do not void a validly formed contract. The buyer is legally bound by the terms she agreed to in writing, and her claim that she 'never agreed' is contradicted by her own signature on the counteroffer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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.
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