Is a 5 day real estate offer to me in a memorandum a legal contract?

Question

A landowner offered to sell me an acre of land for $90,000 in a memorandum signed by him.  His offer allowed a 5 day time period for me to accept. When I advised him on the 4th day that I will buy the property for $90,000, he told me he had already sold it. Do the landowner’s actions represent a breach of contract? Can the landowner legally sell his farm to anyone else during the 5 day period? How would the court rule in this case?

Vincent Liberti · Answer

You would need a lawyer from your state to carefully review the document based upon the laws of your state.  This issue is too specific with which to generally opine.

Robert Slotkin · Answer

He did breach the agreement and you can take it to court.  However,   contracts have to be supported by "consideration." Did you pay anything for the   right to purchase or put down a deposit?  If not you will not get anywhere   in court and should drop it.

Austin Hirschhorn · Answer

Agreements to sell real estate have to be in writing to satisfy the statutory requirements.  If the memorandum describes the property involved, the price, and the time for acceptance and you accepted within the required time frame you would have a contract.  Did you accept in writing?  If so, this would be helpful.   The real problem is determining the remedy.  You might legally be entitled to specific performance of the contract but this might not be possible for the court to order if the property was sold to someone else who did not have any knowledge about your pending deal.  Another remedy for breach of contract would be damages but if this was vacant land proving damages might be difficult unless you had some other deal pending with the land and can prove the dollar amount you lost because the seller did not perform.  It doesn't appear that there is a pot of gold at the end of the rainbow in this situation.  You might be wise to not spend money on litigation and move on with your life.

John Brennan · Answer

From what you have related you have a case.

Leonard A. Kaanta · Answer

You have a case, but there are no sure things in the law, you need an attorney.

James Weiner · Answer

It sounds like it was a valid offer that was open for 5 days..If you accepted (in writing) within that 5 days you have a claim I suggest you contact an attorney immediately.

Douglas Tull · Answer

It depends.  If the memo said the "offer" was irrevocable for 5 days, then you would have an argument if you then tried to accept within the 5 day period.  If not, there was no contract until you accepted.  If you did not accept before the other person, no contract was formed.  Of course to render a proper legal opinion would require me to view the memorandum.

William Spern · Answer

Assuming you have a written offer to purchase, you may be able to stop any subsequent sale. You must have written signed documents to buy the property and agree to the purchase. Oral agreements to buy or transfer property, will not hold up in court.

Charles Perry · Answer

Based on these facts, I would say that the contract was formed the   moment that you accepted the offer.  This assumes, of course, no facts   that would suggest a retraction of the offer before your acceptance    such as him telling you before you accepted that the property had been   sold.  It also assumes that your acceptance was validly presented such   that it is binding.  The landowner does have the right to sell that land to someone else.    He would nevertheless be liable to you in damages, assuming you could   establish the fact that you properly accepted the offer.  I do not see   any facts to suggest how much those damages might be.  Unless there   are additional facts, there is nothing to suggest that a Court would   negate the sale or sales contract with the third party and require the   landowner to sell to you.

Michael Yeksavich · Answer

I would have to see the document to make a more informed answer.  I also have a issue with whether or not there was consideration by you to form an enforceable contract.

James Frederick · Answer

Without seeing the paperwork in question, it is hard to say for sure, but my guess is that you are probably out of luck. Unless you paid him something for an exclusive "option", then he was free to accept another offer any time before receiving your offer. As it is, I think you had a non-exclusive option, and his offer was rescinded as a result of acceptance from the other buyer.

Victor Waid · Answer

In response to your question as to whether a contract was breached, the answer is no, as no contract had been formed by an offer and acceptance; his statement to you re the land was for sale at a price was an advertisement only and nothing more. No different than any other transaction like cars that are offered for sale on a lot.; the customer makes the offer. You should have made him an offer and obtained and paid for an  option contract from him that he would not sell the land to any other person for a period of time.  A good afternoon to you.

Edward Olson · Answer

There is no way to provide a legal opinion without seeing the documents in question.      However, it is possible that you have a contract which was breached.  There are remedies available for breach of a real estate contract, including specific performance.. in other words.. forcing the sale to you.  My recommendation is that you talk to an attorney as soon as possible to get the best result.

Frances Headley · Answer

The memorandum was at most an offer.  It is not a contract until it is accepted.  Unless you paid for the 5 day time period or there is some other provision of the memorandum that would bind him, it is unlikely that the court would find an enforceable contract or any damage to you.  You should have a real estate attorney review the document and all of the facts to advise you.

Jayne Sebby · Answer

The property owner is within his rights to sell the land to the first person who meets his terms unless you had a signed agreement with him giving you the first right of refusal.  Based on the information you provided, the owner merely let you know in writing that he was willing to sell his property for $90,000 and that he would hold to that price for no more than 5 days.  There was no contract between you.

Michael Stafford · Answer

Provided that the written offer to sell property contained all of the salient points, is dated and is executed by the seller the written offer to sell land is valid. However if  the seller sold the land to a bonifide purchaser, without knowlege of your contract, the sale to the purchaser would be valid. Your remedy, amoung possibly others, would be to sue the seller for damages for breach of contract. Without more facts and a review of the contract I can not state how the court would rule on the matter.

Jane Wilson · Answer

From these facts, it appears you have a cause of action.

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Is a 5 day real estate offer to me in a memorandum a legal contract?

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