In Wisconsin, what is the legal effect of a buyer submitting a written offer to purchase that the seller accepts without modification?
Correct Answer
A) A binding contract is formed between the buyer and seller upon acceptance.
Under Wisconsin contract law, a binding contract is formed when the seller accepts the buyer's written offer to purchase without modification and communicates that acceptance. The offer and acceptance together satisfy the essential elements of a contract (offer, acceptance, consideration). No additional steps such as attorney review, earnest money deposit, or RECR delivery are required to form the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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