In a contract for the sale of real estate, which element is required for the offer to be valid?

• A. The offer must specify a price.
• B. An advertisement is an offer.
• C. The price may be omitted for real estate offers.
• D. The UCC allows a reasonable price at delivery.

Answer: (A)

In real estate deals, the offer must be definite, with the price as a key term. The price sets the obligation and lets the other party know exactly what is being proposed to purchase and for how much; without a stated price, the offer is too indefinite to be binding. Advertisements are usually invitations to negotiate, not offers, so they don’t create a binding offer on their own. Omitting the price in a real estate offer makes the terms unclear and prevents formation of a contract. The UCC governs the sale of goods, not real estate, so open price terms allowed for goods do not apply here. Therefore, specifying a price is the essential requirement for a valid real estate offer.