ContractsIntermediateDelaware Exam

What is an 'offer to purchase' in Delaware real estate?

AA signed listing agreement
BA written proposal by the buyer to purchase a property at specific terms, which becomes a binding contract upon acceptanceCorrect
CSimply the broker's own formal internal commission agreement, unrelated to any offer made to a seller, under standard practice
DA non-binding letter of intent

Why A written proposal by the buyer to purchase a property at specific terms, which becomes a binding contract upon acceptance Is Correct

Answer B: A written proposal by the buyer to purchase a property at specific terms, which becomes a binding contract upon acceptance

An offer to purchase is a written proposal by the buyer to purchase property under specified terms. When the seller accepts the offer without changes and communicates the acceptance, a binding contract is formed.

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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