Contracts
An Alabama buyer makes an offer on a home. The listing agent immediately responds that the seller is interested but wants $5,000 more. No written counteroffer is signed. Is there a binding contract?
AYes — verbal acceptance creates a binding contract
BNo — a verbal response does not constitute a valid acceptance under the Statute of Frauds✓ Correct
CYes — the agent's verbal response binds the seller
DMaybe — depends on the buyer's response
Explanation
Under the Statute of Frauds, real estate contracts must be in writing. A verbal response does not create an enforceable contract, even if both parties intend to agree.
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