Sarah, a buyer in Morgantown, submits a written offer to purchase a home for $285,000. The seller responds with a written counteroffer changing the price to $292,000. Before Sarah accepts the counteroffer, the seller calls her agent and verbally withdraws the counteroffer. Under West Virginia contract law, which statement best describes the legal status of the counteroffer?
Correct Answer
B) The counteroffer is effectively revoked because an offeror may withdraw an offer any time before acceptance
Under general contract principles applicable in West Virginia, an offeror (here, the seller making the counteroffer) may revoke an offer at any time before the offeree communicates acceptance. Because Sarah had not yet accepted the counteroffer when the seller withdrew it, the revocation is effective regardless of the fact that the counteroffer was made in writing. There is no West Virginia statute requiring that a revocation be in the same form as the offer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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