A seller in Kona receives two simultaneous purchase offers on her fee simple property. She accepts Offer A at $890,000 and the buyer is immediately notified. Thirty minutes later, she realizes she prefers Offer B at $905,000 and attempts to accept it as well, claiming the first acceptance was a mistake. Under Hawaii contract law, what is the legal result?
Correct Answer
A) A binding contract exists with Buyer A, and the seller's attempt to accept Offer B has no legal effect on that contract
Once the seller accepted Offer A and communicated that acceptance to Buyer A, a binding contract was formed. The seller cannot unilaterally undo a completed contract simply by preferring a later offer. While the seller may attempt to accept Offer B, doing so creates a second contract that places her in breach of the first. The contract with Buyer A remains fully enforceable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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