Question

After accepting an offer in writing. if a seller withdraws acceptance and cancels the transaction which of the following is true?

A. The buyer is obligated to proceed with the transaction.
B. The seller has the right to withdraw acceptance at any time.
C. Both parties are released from their obligations.
D. The transaction becomes legally binding only after the exchange of goods.

Answer 1

After accepting an offer in writing, if a seller withdraws acceptance and cancels the transaction, both parties are released from their obligations.

Step-by-step explanation:

According to the information provided, if a seller withdraws acceptance and cancels the transaction after accepting an offer in writing, the correct answer is option C: Both parties are released from their obligations.

The excerpt provided states that if neither party cancels the agreement and the possession of the residence is unable to be delivered, the agreement can be canceled and terminated upon written notice to the other party. In such a case, neither party shall have liability to the other, and any sums paid under the agreement shall be refunded in full. This implies that both the buyer and the seller are released from their obligations.

It is important to note that once both parties have accepted the offer in writing, a legally binding agreement is formed, and the transaction becomes binding. The exchange of goods is not a requirement for the agreement to be legally binding.