Question 163

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

When the seller changes the title company in the contract offer, it constitutes a modification of the original terms, which transforms the offer into a counteroffer. This means the initial offer is rejected, and the buyer would need to accept the new terms for the contract to proceed.

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

This option is incorrect because the acceptance of a modification is not determined by the buyer's feelings about the change. Changing the title company constitutes a counteroffer, which must be formally accepted by the buyer for it to be valid.

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 changing the title company in the context of the contract. The focus of the question is on how such a change affects the contractual agreement itself.

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 to the contract. As such, it does not remain binding on the parties unless both agree to the modification.

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

This option is correct because altering the title company in the contract changes the terms of the offer, thereby constituting a counteroffer. The original offer is rejected, and the buyer must agree to the new terms.

Conclusion

The correct answer is D, as any modification to the contract affects its binding nature, leading to a counteroffer situation. Options A, B, and C fail to recognize the legal implications of changing contract terms, thereby supporting the conclusion that the original offer is rejected upon any alteration.