ContractsIntermediateArizona Exam

In Arizona, an offer becomes a binding contract when:

AThe buyer signs the offer
BThe seller signs the acceptance and the buyer is notified of the seller's acceptanceCorrect
CThe earnest money check clears the bank
DThe title company receives the signed contract

Why The seller signs the acceptance and the buyer is notified of the seller's acceptance Is Correct

Answer B: The seller signs the acceptance and the buyer is notified of the seller's acceptance

A binding contract is formed when the offeror (buyer) receives notice that the offeree (seller) has accepted the offer exactly as made. Acceptance must be communicated back to the buyer — signing alone does not form a contract until the buyer is notified.

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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