38. 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 buyer's 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.
In this situation, the original offer of $210,000 was effectively rejected when the seller accepted the price but did not agree to include the stove. By excluding the stove, the seller created a counteroffer that must be accepted in writing to be valid.
A) The original offer was rejected and the seller's counteroffer must be accepted in writing.
This option is correct because the seller's decision to exclude the stove constitutes a counteroffer. To form a valid contract, the buyer must accept this counteroffer in writing, as oral acceptance of a counteroffer is typically not sufficient to create a binding agreement.
B) Neither the seller nor his licensee has a right to make any changes to the original offer.
This option is incorrect because the seller has the right to modify the terms of the original offer, including the inclusion or exclusion of specific items such as appliances. The seller's action to exclude the stove demonstrates their authority to amend the offer.
C) The offer has been signed and accepted by all parties and creates a valid contract.
This option is incorrect because, while the seller signed the change, the buyer's acceptance was only oral. For the contract to be valid, all modifications, including the counteroffer regarding the stove, must be accepted in writing by the buyer.
D) The buyer's licensee can sign the change regarding the stove on behalf of the buyer.
This option is incorrect because a licensee can only act on behalf of the buyer if given explicit authority to do so. In this case, the buyer's licensee does not have the authority to sign the change without the buyer's written consent.
Conclusion
Ultimately, the situation demonstrates that the original offer was rejected, and a counteroffer was created through the seller's changes. For a valid contract to exist, the buyer must accept this counteroffer in writing, making option A the only correct choice, while all other options misunderstand the requirements for contract formation and the rights of the parties involved.