11. On August 3, a seller enters into a 90-day exclusive agency listing on a property with a gravel driveway. On October 31, the listing licensee obtains an offer on the property. The offer is for the full listing price with a stipulation that the driveway be paved. The seller signs the offer after crossing out the clause about paving the driveway. The seller initials and dates the changed clause. Has a contractual obligation been created?
Answer: D
No, because the acceptance was qualified and created only a counteroffer.
A contractual obligation has not been created because the seller's acceptance of the offer was not unconditional; it was qualified by striking out the clause regarding paving the driveway, which constitutes a counteroffer.
A) Yes, because a full-price offer was obtained during the listing period.
While it is true that a full-price offer was obtained during the listing period, this alone does not create a contractual obligation. The seller's modifications to the offer indicate that it was not accepted as originally presented, thereby negating the formation of a contract.
B) Yes, because the seller signed the offer during the listing period.
Although the seller signed the offer during the listing period, the key issue is that the seller altered the terms by crossing out the paving clause. This alteration means that the seller did not accept the offer in its original form, leading to the conclusion that no binding contract was formed.
C) No, because the offer was obtained after the listing expired.
This statement is incorrect because the offer was indeed obtained within the 90-day exclusive agency listing period. Therefore, the timing of the offer does not negate the seller's ability to form a contract; rather, the issue lies with the qualified acceptance.
D) No, because the acceptance was qualified and created only a counteroffer.
This is the correct answer because the seller's act of crossing out the clause regarding the driveway constitutes a modification of the original offer, creating a counteroffer instead of an acceptance. A counteroffer does not establish a contractual obligation until it is accepted by the original offeror.
Conclusion
In summary, the correct answer is D, as the seller's modification of the offer transformed it into a counteroffer, which is not a binding agreement until accepted by the other party. Options A and B incorrectly assume that a contract can be formed despite the conditional acceptance, while Option C misrepresents the timing of the offer relative to the listing period.