Acceptance requires both a written acceptance and delivery.
The GAR Purchase and Sale Agreement requires that an offer (or a counteroffer) be both 1) accepted in writing and 2) delivery back to the offeror, prior to the expiration of the time limit of the offer, to be effective.
For example, suppose the Time Limit of an Offer is 12:00 pm on May 1. The Seller accepts the offer through Remine at exactly 12:00 pm on May 1, but the accepted offer is not delivered to the Buyer until 12:01 pm. Is there an agreement? According to the provisions of the GAR Purchase Agreement, the answer is no. The acceptance was delivered after the expiration of the time limit. Of course, the parties can agree to accept by sending a binding date confirmation, an amendment or even a Reinstatement of Contract, but the party that set the time limit can also decide to back out.
In this very hot Seller’s market, these things really happen. Consider the opposite situation. The Seller sends a counteroffer to the buyer. In the meantime, the seller receives a better offer. The Seller can’t act on the new offer, because the counteroffer is in play until 12:00 pm. The Buyer signs at 12:00, but the agent does not deliver the acceptance until 12:01 pm. Is there an agreement? No. The Seller is free to accept a different offer.
Withdrawal of the Counteroffer.
An alternative to the above example is that, if the seller receives a new offer that the seller wants to accept (while the time period for acceptance by the first buyer is still open) the seller can withdraw the counteroffer to the 1st buyer prior to the 1st buyer signing. Once it is properly withdrawn, the seller is free to accept a new offer.
The requirement of delivery of an acceptance is covered in 3 different places in the GAR Purchase and Sale Agreement: 1) Time Limit of Offer, 2) Delivery of Notice and 3) Notice of Binding Agreement. It is also covered in the Counteroffer language at the bottom of page 1.
Remine tracks and time stamps.
Remine tracks and time stamps each signature and delivery of documents. To conform times in Remine, select the Audit Report and the time stamp information can be downloaded.
A late acceptance is a counteroffer.
When an express time limit is included in a contract, but the offer is not accepted within the time limit, no agreement is formed. If, however, the offer is accepted at a later time, it is generally considered a counteroffer that the original offeror can accept or not.
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