Contracts

In New Jersey, an offer to purchase becomes a binding contract when:

AThe buyer signs the offer
BThe seller signs the offer and the buyer is notified of acceptance✓ Correct
CThe attorney review period expires without cancellation
DThe deposit check clears the bank

Explanation

A contract is formed when the offeree (seller) accepts the offer and communicates that acceptance to the offeror (buyer). In NJ practice, the contract becomes binding once the seller signs and the buyer is notified—subject to the 3-business-day attorney review period.

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