Tom makes an offer to purchase a Wisconsin property with a 48-hour acceptance deadline. The seller receives the offer but does not respond within 48 hours. On hour 52, the seller signs and returns the accepted offer to Tom. Under Wisconsin contract law, what is the status of the agreement?
Correct Answer
A) No binding contract exists; the seller's late acceptance operates as a new counteroffer.
Under Wisconsin contract law, an offer lapses when its specified acceptance deadline passes without acceptance. When the seller attempts to accept after the 48-hour deadline has expired, the original offer no longer exists. The seller's late 'acceptance' is legally treated as a new counteroffer, which Tom may then choose to accept or reject. This is a fundamental principle of offer and acceptance in Wisconsin real estate contracts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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