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I have a purchase agreement for a small business with a due diligence period and contingencies. I also have place funds in escrow. I have released many contingencies in my due diligence but some still remain, such as receiving the rest of my financing. Since the DD period is over, can the seller solicit other offers or enter an agreement while my funds are still in escrow? My financing is running behind because the seller was late getting me the required financial information.
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Generally, the agreement between the parties will specify whether the seller may solicit/accept other offers. If the seller is not, under the terms of the agreement, allowed to accept any other offers, then there may be a breach, especially if the seller caused the delay by not providing the information necessary to facilitate obtaining financing in a timely manner. This is very fact-specific, requiring a review of the documents and conduct of the party in detail.
Answered on Mar 24th, 2014 at 3:28 PM