A buyer submits a written offer to purchase a condominium in New Orleans for $320,000, with the offer expressly stating it is 'irrevocable for five days.' Two days later, the buyer finds a better property and attempts to withdraw the offer before the seller has responded. The seller then accepts the original offer on day three. Under Louisiana Civil Code principles, what is the result?
Correct Answer
B) A binding contract was formed when the seller accepted, because the irrevocable offer could not be withdrawn during the five-day period
Louisiana Civil Code Art. 1928 provides that when an offeror sets a period of time for acceptance, the offer is irrevocable during that time. Because the buyer expressly stated the offer was irrevocable for five days, the buyer could not validly revoke it during that period. The seller's acceptance on day three was timely and effective, forming a binding contract. Louisiana's Civil Code approach to irrevocable offers differs from common-law states where consideration is typically required to make an offer irrevocable (option contract).
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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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