Seller offers to sell their home to a purchaser for $70,000. The purchaser responds that he will buy the home for $60,000. The seller refuses the purchaser's offer to buy for $60,000. After that refusal, the purchaser offers to buy the home for $70,000. At this time, what is the legal relationship of the parties?

Question

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The legal relationship of the parties is that there is an offer to purchase the home for $70,000. The initial offer from the seller was for $70,000, and the purchaser's counteroffer of $60,000 constituted a rejection of that offer. When the purchaser later offered to buy the home for $70,000, it was a new offer that the seller could either accept, reject, or counter. Therefore, there is currently an offer to purchase the home for $70,000, but there is no contract until the offer is accepted by the seller.

Seller Offers to Sell Their Home to a Purchaser for $70,000