Contracts
An Iowa seller accepts an offer on Monday. On Tuesday, before the buyer was notified of acceptance, the seller receives a better offer. What is the legal status?
AThe seller may accept the better offer since the buyer wasn't notified
BA binding contract was formed when the seller accepted on Monday, and the seller must honor it✓ Correct
CThe seller can rescind acceptance within 24 hours
DThe seller must accept the better offer by law
Explanation
Under Iowa contract law, acceptance typically occurs when the offer is accepted, and communication of acceptance completes the contract. However, the traditional rule is that the contract is formed when acceptance is communicated to the offeror.
Related Iowa Contracts Questions
- An Iowa court may grant rescission of a real estate contract when:
- Under the Iowa Statute of Frauds, a contract for the sale of real property must be:
- An Iowa seller receives two offers at the same time. The seller is permitted to:
- Under Iowa law, an amendment to a purchase agreement must be:
- Under Iowa real estate contract law, the term 'time is of the essence' means:
- A purchase contract contains a condition requiring the buyer to sell their current home before closing. This is known as a:
- Specific performance as a remedy for breach of an Iowa real estate contract means:
- Which Iowa real estate contract clause allows the seller to continue marketing the property and accept a better offer if the buyer doesn't remove a contingency within a specified time?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →