65. 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 response modifies the original terms by requesting a general warranty deed instead of the special warranty deed offered by the seller. This change signifies that the buyer is not accepting the original offer as it stands, thus constituting a counteroffer.
A) It is an acceptance, because the buyer is entitled to a general warranty deed
This option is incorrect because the buyer's letter does not accept the seller's original offer in its entirety. Instead, it modifies a key term of the offer, which prevents it from being 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 incorrect as well. The buyer's letter does more than simply inquire; it explicitly states acceptance of the price but alters the conditions of the sale, thus affecting the legal standing of the original offer.
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 clearly rejects the original offer by introducing new terms (the request for a general warranty deed) while simultaneously expressing a willingness to proceed with the transaction at the original price. This constitutes a counteroffer, which is a legal response to an offer that modifies its terms.
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. An implied contract arises from actions rather than explicit terms, and since the buyer's letter modifies the original offer, it does not establish a binding agreement. The acceptance must be clear and complete to form a contract, which is not the case here.
Conclusion
The buyer's letter serves as both a rejection of the seller's original offer and a counteroffer due to the modification of the deed type requested. Options A, B, and D fail to recognize the legal implications of altering the offer's terms, while C accurately captures the nature of the buyer's response in the context of contract law.