Seller Diane in Brentwood, Tennessee receives an offer from buyer Sam and signs an acceptance. Diane's broker sends the signed acceptance via email to Sam's affiliate broker at 4:55 PM on Friday. Sam's affiliate broker does not check email until Monday morning. The offer stated that acceptance must be communicated by 5:00 PM Friday. Under Tennessee law, which of the following is the most defensible conclusion?
Correct Answer
D) A binding contract was formed because the acceptance was transmitted to the buyer's agent's email before the 5:00 PM deadline
Under Tennessee contract law and general agency principles, communication of acceptance to the buyer's authorized agent (the affiliate broker) is legally equivalent to communication to the buyer. When the seller's broker transmitted the signed acceptance to Sam's affiliate broker's email before the 5:00 PM Friday deadline, acceptance was effectively communicated within the deadline. The fact that the affiliate broker did not physically read the email until Monday does not negate the legal effectiveness of the timely transmission. Email is a widely accepted method of communication in Tennessee real estate transactions.
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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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