The Cornillies refused to include the questioned items in the sale. The Giannettis then accepted the $160,000 offer but changed the mortgage amount from $124,000 to $128,000. Is there a binding contract? Explain.
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The Cornillies listed with a real estate agent a home for sale. Patrick and Anne Giannetti offered $155,000 for the home and submitted a deposit in the amount of $2,500. The Cornillies countered this offer with an offer to sell the house for $160,000. The Giannettis then inquired whether certain equipment and items of furniture could be included with the sale of the house. The Cornillies refused to include the questioned items in the sale. The Giannettis then accepted the $160,000 offer but changed the mortgage amount from $124,000 to $128,000. Is there a binding contract? Explain. |
Explanation
In this case, Individual G first made an offer to Individual C. Individual C quoted $155,000 for the property and Individual G paid a deposit of $2,500. Individual C then changed the price and quoted the property for $160,000. Individual G enquired about a few things and accepted the final offer.
But Individual G then increased the mortgage amount from $124,000 to $128,000. Individual C did not approve this in legal terms, which created a void of the unilateral contract and no binding contract was made.
Unilateral contracts are those that include a promise in exchange for a completed act or a forbearance to act. In these contracts, the offeror or the promisor makes a promise to the offeree or the promisee, who receives the promise.
Verified Answer
No, the contract between the two parties is not a binding contract since a binding contract is one wherein the promisor meets all the requirements of the promisee, and the contract is an enforceable promise or the agreement is valid. The change of the mortgage value is not legally approved by Individual C, and so offer could have been unilateral.
