ContractsIntermediateAlabama Exam

A buyer makes a written offer that the seller accepts with a minor handwritten change initialed only by the seller. This creates:

AA binding contract because the change is minor, under the applicable standard
BA counteroffer, not an acceptance — the buyer must accept the modified termsCorrect
CA void agreement
DA contract requiring AREC approval

Why A counteroffer, not an acceptance — the buyer must accept the modified terms Is Correct

Answer B: A counteroffer, not an acceptance — the buyer must accept the modified terms

Any modification to an offer — even minor — constitutes a counteroffer rather than an acceptance. For a binding contract to form, the buyer must accept the seller's counteroffer (the initialed change) without further modification.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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