Contracts

Under Oregon contract law, an offer to purchase real estate becomes binding when:

AThe buyer signs the offer
BThe seller reads the offer
CAcceptance is communicated to the offeror✓ Correct
DThe earnest money check clears the bank

Explanation

Under the Oregon Statute of Frauds and general contract law, a contract is formed when the offeree's acceptance is communicated back to the offeror. Signing alone is not sufficient — the buyer must receive notice of acceptance. This is why Oregon purchase agreements typically specify how and when acceptance must be communicated.

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