Question 20

Any change in the contract is a counteroffer, so the offer is rejected.

Changing the title company named in the offer constitutes a modification of the original terms, which makes it a counteroffer. This action effectively rejects the initial offer and necessitates the buyer's acceptance of the new terms.

A) If the buyer does not care, it is acceptable.

This option is incorrect because the buyer's feelings about the change do not negate the fact that altering the title company constitutes a counteroffer. Contract law requires all parties to agree to any changes, regardless of personal sentiment.

B) A conflict of interest is created for the sister.

While it is true that having a family member involved may raise ethical concerns, this option does not directly address the legal implications of changing the title company in the contract. The primary focus of the question is on the effect of the change on the contract itself.

C) This is not a material change, so it is binding on the parties.

This statement is incorrect since changing the title company is considered a material change to the contract. A binding agreement requires mutual consent to the original terms, which is not possible if one party alters those terms.

D) Any change in the contract is a counteroffer, so the offer is rejected.

This is the correct answer because any modification to the original terms of a contract, such as changing the title company, constitutes a counteroffer. This results in the rejection of the initial offer, requiring the buyer to accept the new terms for an agreement to be formed.

Conclusion

The correct answer is D because it accurately describes the legal consequences of modifying a contract. All other options fail to address the fundamental principle that any change creates a counteroffer, thus rejecting the original agreement. Understanding this concept is crucial in real estate transactions and contract law.