52. A seller sent a buyer a letter in which she offered to sell her property for $85,000 cash by a special warranty deed. The buyer sent a letter back to the seller stating, I accept your offer at $85,000 cash, but you must convey with a general warranty deed. Which of the following is true about the buyer's letter?
Answer: C
The buyer's letter is a rejection of the seller's offer, but it is also a counteroffer.
The buyer's letter modifies the original offer by requesting a general warranty deed instead of accepting the special warranty deed proposed by the seller. This constitutes a rejection of the original offer and simultaneously presents a new offer, making it a counteroffer.
A) It is an acceptance, because the buyer is entitled to a general warranty deed.
This option is incorrect because the buyer did not accept the seller's original offer as it was presented. Instead, the buyer's request for a general warranty deed alters the terms of the offer, which means it cannot be classified as an acceptance.
B) It is merely an inquiry of the seller, and has no legal effect on the seller's original offer.
This option is also incorrect. The buyer’s letter does not serve as an inquiry; rather, it clearly rejects the original terms and proposes a new one. Therefore, it has legal implications, signaling a change in the agreement.
C) It is a rejection of the seller's offer, but it is also a counteroffer.
This option is correct because the buyer's letter explicitly alters the terms of the original offer by stipulating a different type of deed. This change constitutes a rejection of the original offer and creates a new offer, thereby making it a counteroffer.
D) It is an implied contract, because the buyer was willing to pay cash, and because the buyer accepted in writing.
This option is incorrect as it mischaracterizes the nature of the communication. An implied contract cannot be established here because the buyer’s terms differ from those of the seller's offer, and thus, no agreement is reached under the original terms.
Conclusion
The correct answer is C, as the buyer's letter clearly rejects the seller's offer while simultaneously presenting a new condition, thereby creating a counteroffer. All other options fail to accurately reflect the legal implications of the buyer's response, as they either misinterpret the acceptance of the offer or overlook the nature of the counteroffer.