ContractsIntermediateCalifornia Exam

A buyer submits an offer on a home. Before the seller accepts, the buyer withdraws the offer. What is the result?

AThe seller can still accept and force the buyer into the contract
BThe buyer is liable for the seller's marketing costs
CThe offer is revoked, and no contract is formedCorrect
DThe buyer forfeits any deposit already paid

Why The offer is revoked, and no contract is formed Is Correct

Answer C: The offer is revoked, and no contract is formed

An offer can be revoked any time before acceptance, as long as it has not been accepted and communicated to the offeror. Revocation before acceptance means no contract is formed, and the buyer has no obligation.

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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