A buyer in Burnsville, Minnesota submits a written offer to purchase a home. The offer states that it will expire if not accepted by 6:00 PM on Friday. The seller's agent receives the offer on Thursday afternoon. On Friday at 5:55 PM, the seller signs the acceptance and the seller's agent immediately emails it to the buyer's agent. The buyer's agent receives the email at 6:03 PM. Under Minnesota contract principles, which of the following is MOST accurate?
Correct Answer
C) No binding contract was formed because the acceptance was not received before the 6:00 PM deadline
Under Minnesota contract law, acceptance must be communicated to the offeror (or their agent) within the offer's stated deadline to form a binding contract. The offer expired at 6:00 PM. The buyer's agent (the offeror's representative) did not receive the acceptance until 6:03 PM — three minutes after the deadline. Even though the seller signed at 5:55 PM and the email was sent before 6:00 PM, communication was not complete until the email was received at 6:03 PM. No binding contract was formed, and the late acceptance functions as a new counteroffer.
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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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