In the given scenario, what is the status of the contract between Owner and Buyer Johnson?

The correct understanding in this scenario hinges on the fundamental principle of consideration in contract law. For a contract to be enforceable, it typically requires both parties to provide consideration, meaning something of value must be exchanged.

If there was a lack of consideration in this scenario, it implies that one party did not agree to perform an action or provide value that the other party could depend on as part of the contract. Without consideration, the legal structure of a binding agreement collapses, leading to the conclusion that no enforceable contract exists. This situation can arise in cases where one party may express intent to enter into a contract, but without the exchange of consideration, the agreement cannot be judicially enforced.

In contrast, the other options suggest scenarios where either verbal acceptance, faxing acceptance, or legal obligation are claimed to create an enforceable contract, which overlook the necessity for a mutual exchange of value. Without that core element of consideration, these assertions do not hold legal weight in establishing a binding contract between the Owner and Buyer Johnson.