91. A property is listed for $219,900. 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.
In this situation, the seller's decision to exclude the stove constitutes a counteroffer, which effectively rejects the original offer. For a counteroffer to be valid and binding, it must be accepted in writing by the buyer.
A) The original offer was rejected and the seller's counteroffer must be accepted in writing.
This option is correct because the seller’s exclusion of the stove from the offer signifies a counteroffer. Under contract law, a counteroffer replaces the original offer, meaning that the original offer is no longer valid unless the buyer accepts the counteroffer in writing.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 modify the terms of the offer, which is what occurred when the stove was excluded. This modification led to a counteroffer that requires acceptance.
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 modification, the buyer did not provide written acceptance of the counteroffer. A valid contract cannot exist in this case until the buyer's acceptance is documented in writing.
D) The buyer's licensee can sign the change regarding the stove on behalf of the buyer.
This option is incorrect. The buyer's licensee cannot sign the contract modification unless they have explicit written authority from the buyer to do so. Oral acceptance does not suffice to create a binding agreement in this context.
Conclusion
The correct answer is A because the seller's modification of the offer to exclude the stove constitutes a counteroffer that requires acceptance in writing to create a valid contract. Options B, C, and D fail to recognize the implications of the counteroffer and the necessity for written acceptance, thus reinforcing the importance of formalized communication in contractual agreements.