Maria submits a written offer to purchase a home in Madison for $320,000. The seller responds in writing, crossing out $320,000 and writing in $335,000, then signs the document. Under Wisconsin law, what has the seller created?
Correct Answer
D) A counteroffer that terminates the original offer and gives Maria the right to accept or reject.
Under Wisconsin contract law, when a seller modifies any material term of a buyer's offer — such as the purchase price — and returns it, this constitutes a counteroffer. A counteroffer terminates the original offer and creates a new offer that the original offeror (Maria) may accept or reject. This is a fundamental principle of contract formation applicable under Wisconsin's WB-11 Offer to Purchase framework.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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.
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