A buyer's offer is accepted by the seller. Before the buyer receives notice of acceptance, the buyer calls to revoke the offer. Which statement is CORRECT?
Why The contract is formed because acceptance occurred before the revocation was communicated Is Correct
Answer B: The contract is formed because acceptance occurred before the revocation was communicated
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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Key Terms to Know
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
State-Specific Concepts
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