Question 76

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

When the seller changes the title company in the contract offer, this constitutes a modification to the original terms of the offer. Such a modification is treated as a counteroffer, which effectively rejects the buyer's initial offer.

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

This option is incorrect because the acceptance of a contract requires mutual agreement on all terms. Even if the buyer is indifferent, changing a fundamental term like the title company alters the original agreement and results in a counteroffer.

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

While this statement may be true in regards to ethical considerations, it does not address the legal implications of changing the title company in the contract. The focus of the question is on the contractual validity, making this option irrelevant in that context.

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

This option is incorrect because changing the title company is indeed a material change that affects the conditions of the sale. Thus, it cannot be binding on the parties unless both agree to the new terms.

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

This statement is correct. Any modification to the terms of a contract, such as changing the title company, results in a counteroffer. This counteroffer rejects the original offer and requires the buyer's acceptance of the new terms.

Conclusion

The correct answer is D, as any alteration to the contract serves as a counteroffer, nullifying the original offer. Options A and C misinterpret the implications of such a change, while option B, while noting a potential conflict of interest, does not address the contractual issue at hand. Therefore, D is the only option that accurately reflects the legal consequences of modifying the contract.