ContractsIntermediateDelaware Exam

In Delaware, what happens to a real estate contract when the seller dies after accepting an offer but before closing?

AThe contract is automatically void
BThe contract remains binding on the seller's estate, and the closing proceeds through the personal representativeCorrect
CThe buyer may renegotiate or withdraw with earnest money returned
DThe property reverts to the state

Why The contract remains binding on the seller's estate, and the closing proceeds through the personal representative Is Correct

Answer B: The contract remains binding on the seller's estate, and the closing proceeds through the personal representative

A binding purchase contract survives the death of either party. The seller's estate (through the personal representative/executor) is obligated to complete the transaction according to the contract terms.

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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