ContractsIntermediateAlaska Exam

In Alaska, a purchase agreement is legally binding when:

AThe buyer signs the offer
BThe seller signs the offer and communicates acceptance to the buyerCorrect
CThe earnest money is deposited
DThe title company opens escrow, as is customary in this jurisdiction

Why The seller signs the offer and communicates acceptance to the buyer Is Correct

Answer B: The seller signs the offer and communicates acceptance to the buyer

A contract in Alaska (and generally) is formed when the offeree accepts the offer and communicates that acceptance back to the offeror. Signing alone is insufficient without communication of acceptance.

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.

Key Contracts Terms in This Question

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