Question 76

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 contract terms. This alteration is regarded as a counteroffer, effectively rejecting the initial offer made by the buyer.

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

While a seller may wish to change the title company if the buyer is indifferent, this does not negate the fact that changing the terms of the contract results in a counteroffer. Acceptance of the original offer would require the buyer’s agreement to the original terms without modification.

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

Although changing the title company to one where the seller's sister works could suggest a conflict of interest, this option does not address the contractual implications of such a change. The primary issue is that any modification leads to a counteroffer, not merely the presence of a conflict.

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

The change of the title company is indeed a material change because it alters a significant aspect of the transaction. Therefore, this option is incorrect as it mischaracterizes the nature of the change and its binding effect on the parties.

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

This statement accurately reflects the principle of contract law that any modification to the terms of an offer constitutes a counteroffer, thus rejecting the original offer. This is the correct interpretation of the situation presented.

Conclusion

The correct answer is D because it aligns with the fundamental principles of contract law regarding modifications and counteroffers. Options A, B, and C either misinterpret the implications of changing the title company or fail to recognize the legal framework surrounding contract changes, making them incorrect in this context.