Contracts
A seller accepts a buyer's offer. The next day, before the buyer is notified, the seller gets a better offer. Can the seller accept the better offer?
AYes, because the contract is not yet binding
BNo, because a binding contract was formed when the seller accepted✓ Correct
CYes, as long as the seller returns the earnest money
DNo, but the seller can issue a counteroffer to the second buyer
Explanation
A binding contract is formed when the offeror (buyer) is notified of acceptance. However, under general contract principles, once the seller signed the acceptance, the offer was accepted. Under the 'mailbox rule,' acceptance is effective upon dispatch in some jurisdictions. The seller cannot accept a second offer without breaching the first contract.
Related Idaho Contracts Questions
- What is 'anticipatory repudiation' of a real estate contract in Idaho?
- In Idaho, what is the legal effect of a counter-offer on the original offer?
- What is a 'sight unseen' offer in Idaho and what does the buyer risk?
- An acceleration clause in a mortgage allows the lender to:
- A real estate contract in Idaho that lacks consideration is:
- Under Idaho law, what happens to earnest money if a buyer properly exercises a contingency and cancels the contract?
- An Idaho real estate contract states that time is 'of the essence.' If the buyer misses the closing date, the seller may:
- What is 'rescission' of a real estate contract in Idaho and what are the grounds for it?
Practice More Idaho Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Idaho Quiz →