135. A property is listed for $219,000. An offer of $210,000 is submitted to the listing licensee. The offer includes a free-standing stove and refrigerator. The seller accepts the price and the refrigerator, but is not willing to leave the stove. The listing licensee makes the change in the contract to exclude the stove. The seller signs and initials the change. The listing licensee contacts the buyer's licensee by phone regarding the change. The buyers orally accept the change. Which of the following is true regarding this situation?
Answer: A
The original offer was rejected and the seller's counteroffer must be accepted in writing.
The seller's decision to exclude the stove constitutes a counteroffer, which effectively rejects the original offer. Therefore, the buyer must accept this counteroffer in writing for a valid contract to be established.
A) The original offer was rejected and the seller's counteroffer must be accepted in writing.
This option is correct because the seller's alteration to the offer by excluding the stove changes the terms of the original agreement. Since the buyer's acceptance of this alteration was only communicated orally, it does not fulfill the requirement for acceptance of a counteroffer, which must be in writing.
B) Neither the seller nor his licensee has a right to make any changes to the original offer.
This option is incorrect. The seller has the right to make changes to the offer, which they did by excluding the stove. The involvement of the listing licensee in this process does not negate the seller's authority to alter the terms.
C) The offer has been signed and accepted by all parties and creates a valid contract.
This statement is incorrect as the offer has not been accepted in a valid manner. The buyer's acceptance of the seller’s counteroffer was not documented in writing, which is necessary for the creation of a binding contract.
D) The buyer's licensee can sign the change regarding the stove on behalf of the buyer.
This option is also incorrect. A buyer's licensee cannot sign a counteroffer or acceptance on behalf of the buyer without explicit written authority. The change regarding the stove must be accepted by the buyer in writing to be valid.
Conclusion
In this scenario, the seller's modification to the offer by excluding the stove constitutes a counteroffer, which requires written acceptance from the buyer. The original offer is considered rejected, and without written acceptance of the counteroffer, no valid contract exists. Thus, option A is the only accurate representation of the situation, while the other options fail to recognize the necessity of written acceptance in contractual agreements.