Contracts

Under Oregon law, which of the following creates a binding obligation between a buyer and seller?

AA letter of intent to purchase
BA fully executed purchase and sale agreement with mutual acceptance✓ Correct
CAn oral agreement to purchase at a specific price
DA written offer submitted to the seller but not yet accepted

Explanation

A binding contract in Oregon is formed when both parties have signed (and communicated acceptance of) a purchase and sale agreement on identical terms. A letter of intent is typically not binding, oral real estate agreements are not enforceable under the Statute of Frauds, and an unaccepted offer is not yet a contract.

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