A Kentucky buyer's agent presents an offer to purchase a home in Covington. The listing agent tells the buyer's agent that the seller will 'definitely accept' and to 'consider it done.' The seller then sells the property to another buyer the next day without ever signing the original buyer's offer. If the first buyer sues for breach of contract, what is the most likely result under Kentucky law?
Correct Answer
C) The buyer will lose because no written, signed acceptance was communicated, so no enforceable contract was formed
Under KRS 371.010 (Kentucky's Statute of Frauds), a contract for the sale of real property must be in writing and signed by the party to be charged. The listing agent's verbal statement — however confident — does not constitute a written, signed acceptance by the seller. Because the seller never signed the offer, no enforceable contract was formed, and the buyer cannot succeed in a breach of contract claim based solely on an oral representation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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