June 3rd, 2024 at 11:35 am
Multiple Choice Question: Can your buyer submit to the seller a Withdrawal of Offer (WOO) for BCO #1, along with the buyer’s signature on SMCO #1? Pick the best answer:
A. Yes.
B. Yes, but there’s no valid, binding contract unless the seller signs again.
C. Yes, the buyer must submit a WOO and a new BCO restating the terms in SMCO #1, in hopes that the seller will accept.
D. No, the buyer must submit a new offer in hopes that the seller will accept.
Answer: Just like the SCO scenario from 2 weeks ago, Answer A is not the best answer. The BCO #1 that the buyer had already signed and submitted specifically stated right above the buyer’s signature line as follows: “By making this counter offer, any previous offer or counter offer can no longer be accepted.” Under contract law, once the buyer submits a BCO #1 rejecting the seller’s prior offer (SMCO #1), the buyer can no longer go back to accept the SMCO #1.
Answer B is the best answer. The buyer can submit a WOO for BCO #1 along with the buyer’s signature on the prior SMCO #1. However, there’s no valid, binding contract unless the seller signs again.
For the SCO scenario from 2 weeks ago, one difficulty with going back to accept SCO #1 was the lack of any boilerplate signature line for the seller to sign yet again. But the SMCO does have another signature line for the seller to sign again.
Answer C is not the best answer. Submitting a WOO and a new BCO, as described in Answer C, is probably the cleanest way to do the paperwork for this situation. If the seller signs the new BCO, the parties have a valid contract. But Answer C is not the best answer because of the word “must.” There are many ways that parties can enter into a valid agreement. Some ways are more likely to pass legal scrutiny than others. But Answer C is not the only way. It’s just arguably the cleanest way.
Answer D is wrong, but an excellent practice tip to remember. Sometimes there are so many counter offers, text overflow addendums, withdrawals, and other documents floating around, that starting all over again from scratch may be a good way for a buyer to get the seller into contract.
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