Contract Formation And Counteroffers
Dan decided to sell his house without the assistance of a broker or lawyer. He posted an advertisement listing the house and its asking price on a local real estate website. A week later, an interested buyer emailed Dan, offering $5,000 less than the asking price. Dan informed the buyer that he had changed his mind and would no longer be selling the house. The buyer threatened legal action, claiming that Dan's refusal to sell constituted a breach of contract. Is the buyer correct?
A
Yes, because Dan created a contract to sell his house by listing it, and he must now negotiate with the buyer.
B
No, because the counteroffer differs from the original offer by more than $1,000, which terminates the offer.
C
Maybe; if Dan did not include a clause in his listing reserving the right to cancel the sale, he is obligated to sell.
D
No, because the buyer's counteroffer effectively terminated Dan's original contract for sale.
E
Yes, because a counteroffer is a legal contract and Dan is obligated to accept it.
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