Florida Real Estate Sales Associate Examination Content OutlineReal Estate Contracts and AgencyMedium
A buyer makes an offer to purchase a property for $300,000. The seller responds by stating they will accept the offer, but only if the closing date is moved forward by two weeks and the buyer agrees to pay for the seller's moving expenses, totaling $2,000. What is the legal status of the buyer's original offer?
- AIt has been terminated by the seller's counteroffer.
- BIt has been accepted by the seller, with minor modifications.
- CIt is now a binding contract, subject to the buyer's agreement to the new terms.
- DIt is still a valid offer, and the buyer can choose to accept or reject the seller's additions.
Show answer & explanationAnswer & explanation
Correct answer: A. It has been terminated by the seller's counteroffer.
Any change to the original terms of an offer, no matter how small, constitutes a rejection of the original offer and creates a new offer called a counteroffer. Therefore, the buyer's original offer is terminated.
Why the other options are wrong
- B. Acceptance must be unconditional and without modification to form a valid contract.
- C. It cannot be a binding contract until there is a clear, unconditional acceptance of all terms by both parties.
- D. Once a counteroffer is made, the original offer is no longer valid for acceptance.
Counteroffer
A new offer made in response to an original offer, which effectively rejects the original offer and cannot be accepted by the original offeror unless it is re-offered. It changes one or more terms of the original offer.
- Terminates the original offer.
- Becomes a new offer from the counter-party.
- Must be accepted by the original offeror to form a contract.
- Any change, no matter how small, constitutes a counteroffer.
Memory trick: Offer, then accept or counter, but never both.