ContractsIntermediateArizona Exam

An Arizona purchase contract becomes binding when:

AThe buyer signs the offer
BThe seller accepts and the acceptance is communicated to the buyerCorrect
CThe earnest money is deposited
DThe escrow is opened

Why The seller accepts and the acceptance is communicated to the buyer Is Correct

Answer B: The seller accepts and the acceptance is communicated to the buyer

A contract is formed upon a valid offer and acceptance. In Arizona, the acceptance must be communicated to the offeror (buyer) for the contract to be binding.

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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