48. A buyer signs an offer and the listing broker submits it to the seller. What would the outcome be if the seller signs it and puts it in a desk drawer?
Answer: A
The contract is not binding on the buyer because the buyer wasn't informed of the seller's acceptance.
If the seller signs the offer and subsequently does not inform the buyer of this acceptance, the contract remains non-binding for the buyer. The buyer must be made aware of the seller's acceptance for the agreement to take effect.
A) The contract is not binding on the buyer because the buyer wasn't informed of the seller's acceptance.
This option is correct because a contract typically requires mutual assent, which means both parties must be aware of and agree to the terms. If the seller signs the offer but does not communicate this to the buyer, the buyer remains unaware of the acceptance, thus rendering the contract non-binding.
B) The contract has been signed by both parties and is binding.
This option is incorrect. While the seller may have signed the contract, the lack of notification to the buyer means that the buyer is not aware of the acceptance. A contract is not binding until both parties have knowledge of the agreement.
C) Equitable title has been passed to the buyer.
This option is incorrect. Equitable title refers to the rights of a buyer once a contract is formed and acknowledged by both parties. Since the buyer was not informed of the seller's acceptance, equitable title has not passed.
D) The buyer can sue for specific performance.
This option is incorrect. Specific performance is a legal remedy typically sought when a contract is valid and enforceable. In this case, since the buyer was not informed of the acceptance, the contract is not enforceable, and thus the buyer cannot pursue specific performance.
Conclusion
The correct answer is A, as it emphasizes the necessity of communication for a contract to be binding. Without informing the buyer of the seller's acceptance, the agreement lacks mutual assent, rendering it non-binding. All other options fail to recognize this critical aspect of contract law, highlighting the importance of notification in the validity of agreements.