Marcus submits a written offer on a St. Paul property on Monday morning with an acceptance deadline of Tuesday at 5:00 PM. On Tuesday at 4:45 PM, the seller signs the acceptance. However, the seller's agent does not call Marcus's agent until Wednesday morning. Under Minnesota contract principles, when was the contract formed?
Correct Answer
D) No contract was formed because the deadline had already passed when communication occurred
Under Minnesota contract law, acceptance must be communicated to the offeror before the offer's deadline expires. Marcus's offer expired at Tuesday 5:00 PM. Although the seller signed the acceptance at 4:45 PM (before the deadline), the acceptance was not communicated until Wednesday morning — after the deadline. Because acceptance was not communicated within the offer period, the offer had lapsed and no contract was formed. The seller's signature alone, without timely communication, is insufficient.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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