[Offers and Negotiations – Contract Law: Offer Withdrawal] A buyer submits an offer to purchase a house, giving the listing broker an earnest money…

Under fundamental contract law, an offer can be revoked by the offeror (the buyer) at any time prior to the communication of acceptance by the offeree (the seller). In this scenario, the buyer withdrew the offer before the seller had accepted it. Therefore, no binding contract was formed. The four-day response period is a deadline for the seller to accept; it does not obligate the buyer to keep the offer open for that duration. Since no contract exists, the buyer is entitled to a full refund of the earnest money deposit.

A. The time limit in an offer is for acceptance by the offeree; it does not make the offer irrevocable by the offeror.

B. Forfeiture of earnest money occurs upon a breach of a legally binding contract, not for withdrawing an unaccepted offer.

D. The return of the earnest money is based on the lack of a contract, not on any subsequent actions by the buyer.

1. North Carolina Real Estate Commission. (2023). North Carolina Real Estate Manual. Chapter 8, "Basic Contract Law," Section: Termination of Offers, pp. 8-10. The manual states, "An offer may be terminated by... Revocation or withdrawal by the offeror at any time prior to acceptance and communication of acceptance."

2. Hetrick, P. M., & McLaughlin, J. B. (2017). Webster's Real Estate Law in North Carolina (7th ed.). Chapter 6, "The Real Estate Contract," § 6-10 "Termination of Offers." This text confirms that an offeror retains the power to revoke an offer until the moment of acceptance, and upon such revocation, any earnest money must be returned.

3. UNC School of Government. (2011). Introduction to Real Estate Law. In this courseware, the principles of offer, acceptance, and revocation are detailed, clarifying that an offer is not binding on the offeror until it is accepted and that acceptance is communicated. Section on "Formation of Contracts."