Question 77

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

Changing the title company named in the offer represents a modification to the original contract. This constitutes a counteroffer, which results in the rejection of the initial offer by the seller.

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

This option is incorrect because the acceptance of a modification is not solely dependent on the buyer's feelings. Any change to the terms of the contract requires agreement from both parties, and the modification in question creates a counteroffer rather than an acceptance of the original offer.

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

While this statement may be true in a broader ethical context, it does not directly address the legal implications of modifying the offer. The primary issue at hand is that changing the title company creates a counteroffer, which means the original offer is rejected, making this option irrelevant to the question.

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 considered a material change. Such a change alters the terms of the contract, thus necessitating acceptance by both parties and resulting in a counteroffer scenario rather than a binding agreement.

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

This option accurately reflects the legal principle regarding contract modifications. By changing the title company, the seller creates a counteroffer that the buyer must accept; otherwise, the original offer is rejected.

Conclusion

The correct answer, D, clearly outlines the legal principle that altering any term in a contract leads to a counteroffer, thereby rejecting the original offer. Options A, B, and C either misinterpret the implications of the change or fail to address the fundamental principle of contract law, making them incorrect.