Contracts
A Michigan purchase agreement becomes a binding contract when:
AThe buyer signs the offer
BBoth parties have signed and communication of acceptance has been given to the offeror✓ Correct
CThe earnest money is deposited
DThe home inspection is completed
Explanation
A contract is formed when there is a valid offer and acceptance, and the acceptance is communicated back to the offeror. Signature alone, without communication of acceptance, does not complete contract formation.
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