Contracts
Under New Mexico contract law, when does a contract become binding on both parties?
AWhen the buyer signs the offer
BWhen the seller signs the acceptance
CWhen the acceptance is communicated to the offeror✓ Correct
DWhen earnest money is deposited
Explanation
A contract becomes binding when the offeree's acceptance is communicated back to the offeror. Signing alone is not enough — the acceptance must be communicated.
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