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?
Why No — a verbal response does not constitute a valid acceptance under the Statute of Frauds Is Correct
Answer B: No — a verbal response does not constitute a valid acceptance under the Statute of Frauds
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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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