What constitutes a purchase contract?

A purchase contract is formed when one party makes an offer and the other party accepts it, thus creating a binding agreement. In this case, the buyer making an offer to purchase at the seller's price and the seller subsequently accepting that offer clearly delineates the terms of the contract. This mutual agreement is essential, as it reflects the intention of both parties to enter into a transaction, outlining the specifics such as price and property details.

This definition aligns with the conventional understanding of contract formation in real estate, where a clear offer and acceptance are fundamental to establishing a legal obligation between the buyer and seller. The clarity of the terms reduces ambiguity, ensuring that both parties are aware of and agree to the conditions of the sale.

In contrast, merely making multiple offers, requesting a change in price, or having any agreement without clear acceptance does not create the same binding contract. A purchase contract explicitly requires an unambiguous offer and acceptance to be enforceable.