Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 14

Cherokee Rose Design Build LLC hired Muilenburg Inc. to install underground utilities in a subdivision. After the work was done, Muilenburg sued Cherokee, alleging it had not been paid. Cherokee's lawyer sent a proposed settlement to Muilenburg. It stated: Cherokee would sell three lots to Muilenburg for $75,000; the parties would fully release each other; Muilenburg would dismiss the lawsuit; each party would bear its own costs. Muilenburg's lawyer responded, writing, "My client has authorized me to convey its acceptance of the settlement offer," but Cherokee would have to "convey marketable title by way of a warranty deed," and Muilenburg would like Cherokee to provide a title insurance commitment. After Rose's lawyer prepared releases, Muilenburg realized it had to pay $75,000 for the lots and alleged it had not made an unconditional acceptance because of the requirement of marketable title and request for a title insurance commitment. Was Muilenburg's response a counteroffer?