Tuesday, June 17, 2014

Entering into a contract.

Practice point:  To enter into a contract, a party must clearly and unequivocally accept the offeror's terms. If, instead, the offeree responds by conditioning acceptance on new or modified terms, that response constitutes both a rejection and a counteroffer which extinguishes the initial offer. As the counteroffer extinguishes the original offer, thereafter the offeree cannot unilaterally revive the offer by accepting it.

Student note:  Oral acceptance of a written offer can form a binding contract for the sale of real property.

Case:  Thor Props., LLC v. Willspring Holdings LLC, NY Slip Op 04237 (1st Dept. 2014)

Here is the decision.

Tomorrow's issue: A petition for a delayed birth certificate.