HomeCase briefs › Contracts

Normile v. Miller

Supreme Court of North Carolina · Contracts
ContractsOffer and AcceptanceCounterofferOption ContractsRevocationmirror image rulecounterofferqualified acceptance

Facts

Normile and Kurniawan submitted a written offer to buy Miller's property, stating that the offer had to be accepted by 5:00 p.m. on August 5, 1980. Miller signed the form under seal but changed several material terms, including the earnest money, down payment, mortgage amount, loan term, and added a purchaser qualification contingency, thereby returning a counteroffer. Normile did not accept or reject that counteroffer when it was presented and instead believed he had an option and could wait. Before Normile later attempted to accept, Miller accepted Segal's similar offer, and Byer told Normile, "[Y]ou snooze, you lose; the property has been sold."

Issue

Whether the time-for-acceptance provision in the buyers' original offer became part of Miller's counteroffer so as to make the counteroffer an irrevocable option until 5:00 p.m. on August 5, and whether Normile could accept the counteroffer after receiving notice that Miller had revoked it by selling to Segal.

Rule

A seller's purported acceptance that changes material terms is a qualified acceptance and therefore a counteroffer, which rejects the original offer. The original offer's time-for-acceptance provision does not become a term of the counteroffer unless the counteroffer manifests assent to that provision. An option contract requires, at minimum, a promise to hold the offer open for a specified time. A revocable offer is terminated when the offeree receives reliable notice that the offeror has taken definite action inconsistent with an intent to contract, and thereafter the offeree has no power to accept.

🔒

See the holding & full analysis

Create a free KwikCourt account to unlock the rest of this brief — and practice the case.

  • The court's holding and reasoning
  • Doctrine tests, pitfalls & exam hypotheticals
  • 10 practice questions + 4 AI-graded essays on this case
Sign up free to see more →
Free sample · practice this case

Test yourself

One of 10 multiple-choice questions for this case. Pick an answer to see why.
In Phoenix, Lena Ortiz signed a written offer to buy Omar Reed’s duplex for $420,000, stating the offer would expire if not accepted by 6:00 p.m. Saturday. Omar signed the form but changed the closing date and increased the down payment, then sent it back to Lena.

Which statement best describes Omar’s response?

Explanation. A purported acceptance that changes material terms is a qualified acceptance, which operates as a counteroffer and rejection of the original offer. Signing the same document does not matter if the offeree altered material terms. The original deadline in the rejected offer does not automatically transform the counteroffer into an option. (Derived from Normile v. Miller (n.d.).)