When is a Contract a Contract?
The question came up today working with a buyer. A buyer decides they love a home and makes an Offer to Purchase.
According to the NC Real Estate Commission, now suppose that the seller rejects the buyer’s offer but makes a written, signed counteroffer. To accept the seller’s counteroffer, the buyer must do two things: (1) sign the counteroffer, and (2) communicate acceptance back to the seller or to the seller’s agent.
A signature, without communication, does not create a contract. Conversely, communication of acceptance, without a signature, does not create a contract.
In a “nutshell”
A contract for the sale of land is enforceable only if (1) it is in writing and signed; and (2) an offer has been made, is supported by consideration and is properly accepted. Acceptance requires not only the written signatures of the parties, but also communication of acceptance from the party accepting the last offer/counteroffer to the party (or party’s agent) who made it.
