The seller dies after an offer to purchase their property has been accepted. The seller’s grandchild inherits the real estate. What happens to the sale?
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The offer is voidable.
The offer is not voidable because a voidable contract is one that can be canceled at the option of one party due to a specific legal defect such as minority, fraud, or duress — none of which are present here. The death of the seller after acceptance does not create a voidability condition; the contract was fully formed and valid at the moment of acceptance.
The grandchild is compelled to sell under the terms of the accepted offer.
The offer is terminated.
The offer is not terminated because death only terminates an offer that has not yet been accepted — once acceptance occurs, the offer merges into a binding contract that cannot be unilaterally terminated. Termination of an unaccepted offer by death is a different legal concept that applies before mutual acceptance, not after.
The grandchild may choose whether or not to honor the sale.
The grandchild does not have the discretion to choose whether to honor the sale because the property was inherited subject to the pre-existing contractual obligation, and allowing the heir to simply walk away would unjustly deprive the buyer of a legally enforceable right. The buyer could seek specific performance in court to compel the grandchild to complete the transaction.
Why is this correct?
Under California contract law and general common law principles, a fully executed purchase agreement — one where both buyer and seller have accepted the terms — is a binding contract that does not terminate upon the death of either party. The seller's estate, and by extension the heir who inherits the property, takes the asset subject to the existing contractual obligation to sell. California Probate Code principles confirm that estate assets are transferred subject to the decedent's liabilities and contractual commitments, compelling the grandchild to complete the sale.
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