Wisconsin Real Estate Sales Practice Exam

If a seller issues an amendment that the buyer rejects, what is the status of the original contract?

1. Invalid

2. Still valid

3. Automatically void

4. Negated

The correct answer is: Still valid

When a seller issues an amendment to the existing contract that the buyer rejects, the original contract remains valid and in effect. An amendment is a modification to the original agreement that requires acceptance by both parties to take effect. If one party does not agree to the amendment, it simply means that the terms of the original contract continue to apply as they were initially agreed upon. This situation highlights the principle that an amendment requires mutual consent; without it, the original contract survives unchanged. It's important to understand that rejection of an amendment doesn't imply nullification of the initial agreement; rather, it keeps the original terms intact, maintaining the contractual obligations already established. Thus, the correct interpretation is that the original contract remains valid despite the rejection of any proposed changes.