David, a Missouri buyer, submits a written offer on a Columbia home on Wednesday morning. On Thursday afternoon, before the seller has responded, David calls his agent and says he wants to withdraw the offer. His agent immediately notifies the listing agent that the offer is withdrawn. Two hours later, the listing agent calls back and says the seller had already signed the acceptance at noon on Thursday — before David's withdrawal notice was received. Under Missouri law, is there a binding contract?
Correct Answer
B) No, because David communicated his withdrawal before the seller's acceptance was communicated to David
Under Missouri contract law, an offeror may revoke an offer at any time before acceptance is communicated to the offeror, even if the offer states a specific deadline. David's withdrawal was communicated to the listing agent before the seller's acceptance was communicated back to David or David's agent. The seller's signature at noon on Thursday was not communicated until after David's revocation. Because revocation was received before acceptance was communicated, the offer was effectively withdrawn and no binding contract was formed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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