Tina and James have made an offer on a four-bedroom home that will be much more costly than their present mortgage. The day after making the offer, James learns his company is being sold and he will probably lose his job. Are Tina and James contractually obligated to the offer they have made on the new home?
A. Yes, an offer is put onto a purchase contract form and is legally binding.
B. No, an offer is just an offer until it is accepted by the seller. Once the owner has accepted the offer, the offeror is legally bound to the contract.
C. It depends. If Tina and James have not received notification of the seller's accepting the offer, they may legally withdraw the offer and not be held liable on the contract. However, if the offer has been accepted, and communication of this offer has been received by the buyer, it is legally binding.
D. None of the Above

C. It depends. If Tina and James have not received notification of the seller's accepting the offer, they may legally withdraw the offer and not be held liable on the contract. However, if the offer has been accepted, and communication of this offer has been received by the buyer, it is legally binding.

Explanation:

This requirement is made as a form of protection between the sellers and the buyers. After all the parties involved signed the contract, both parties now held accountable to fulfill their part in the contract. No matter what situation occurs in each party, both of them are obligated to fulfill their contract.

In this case, Tina and James are required to pay the agreed upon numbers to the owner of the property. The owner now prohibited to sell the property to other people beside Tina and James.

The only way out for Tina and James in this situation is to convince the seller to nullify the contract by explaining their situation.