Question

Sam Seller offers to sell his home to Pat Purchaser for the sum of $160,000. Pat Purchaser responds that she will only purchase the home for $150,000. Sam Seller rejects Pat Purchaser’s offer to purchase for $150,000. Pat Purchaser then offers $160,000 for Sam Seller’s home. Is there a contract between Sam Seller and Pat Purchaser for the sale and purchase of the home at $160,000?

Answer 1

One of the features of valid acceptance is that the Acceptance must be absolute in the sense that it should be completely accepted. In the case of the above, Pat Purchaser made a counter-offer to Sam Seller that made the automatic rejection of the prior offer that Same Seller offered which was that of $160,000. However, when the counter-offer got rejected by Sam Seller, it shall certainly not mean that the initial offer still holds good. It is to be also noted that when another counter offer was presented by Pat Purchaser which was again that of $160,000, Sam Seller has yet not accepted the same.

So unless the acceptance is complete on the part of Sam Seller, the sale and purchase of the home at $160,000 cannot be said to have been actually contracted.