• CSC20logograyorangenoyear
  • CSC 2022
      • About
        • About the Conference
        • Floor Plan / Sponsor List
        • Sponsors
        • FAQ
        • Contact Us
        • Health & Safety
      • Hotel & Travel
        • Hotel Accommodations
        • Travel Information
      • Attend
        • Why Attend?
        • Registration & Pricing
        • Conference Schedule
        • Speakers
        • Become a Speaker
        • MCLE Accreditation
      • Sponsor
        • Why Sponsor?
        • Sponsor / Inquire
        • Sponsor Resource Center
        • Sponsorship & Advertising
  • News
    • Latest News
  • Subscribe
    • Newsletter Signup
    • Show Updates
  • .
  • CSC 2022
    • About
      • About the Conference
      • Floor Plan / Sponsor List
      • Sponsors
      • FAQ
      • Contact Us
      • Health & Safety
    • Attend
      • Why Attend?
      • Registration & Pricing
      • Conference Schedule
      • Speakers
      • Become a Speaker
      • MCLE Accreditation
    • Sponsor
      • Why Sponsor?
      • Sponsor / Inquire
      • Sponsor Resource Center
      • Sponsorship & Advertising
    • Hotel & Travel
      • Hotel Accommodations
      • Travel Information
  • News
    • Latest News
  • Subscribe
    • Newsletter Signup
    • Show Updates

December 6 – 8, 2022 |
MGM Grand, Las Vegas

Sign Up Sponsor / Inquire
Q
POPULAR SEARCHES
News + Features
News + Features
News + Features
News + Features
News + Features
News + Features

Latest News

July 27, 2016

Texts Can Constitute Binding Contracts

Latest News
July 27, 2016

Texts Can Constitute Binding Contracts

Under certain circumstances, text exchanges can satisfy the statute of frauds.

For hundreds of years, courts have required tangible proof that commercial and other contracts reflect a “meeting of the minds” by the parties to an agreement.

In the Middle Ages, handwritten documents had to validated by signatures and wax seals impressed with the crest or emblem of the individuals or commercial entities executing the contract. (This was the original purpose of signet rings.)

When printed contracts became commonplace, both parties signed “original copies” of their agreement. Notaries attested to the authenticity of the signatures.

In the United States, this format was codified in the statute of frauds.

With the advent of the almost universal use of electronic communication via email, the old rules became an unnecessary encumbrance and courts have accepted that email correspondence with, and eventually without, an electronic signature can bind the parties.

In a recent case, St. John’s Holdings LLC v. Two Electronics LLC, a Massachusetts court has taken the next logical step in expanding the scope of the statute of frauds by ruling that, given the appropriate factual circumstances, electronic text exchanges can create a binding contract.

Matthew DeVries, in an article in Best Practices Construction Law, reviews the Court’s reasoning in this case.

Real estate agents for the buyer and seller exchanged a series of texts in which they outlined, in considerable detail, the terms of the sale. This culminated in the buyer’s agent texting the buyer’s acceptance of the seller’s terms.

“’Tim, I have the signed LOI and check it is 424 [pm] where can I meet you?’”

The seller’s agent accepted the LOI and the deposit check. However, the seller refused to honor the agreement. The buyer filed suit to enforce performance.

“Thus the questions in the St. John’s Holding were: (a) whether a text message can be a writing under the Statute of Frauds; (b) whether the alleged writing contains sufficiently complete terms and an intention to be bound by those terms; (c) whether there is an offer and acceptance.”

The Court found that a binding contract had been created. This, according to Mr. DeVries, is the first time a Court has ruled on this issue.

The use of texts to negotiate and consummate contracts is probably going to become “business as usual.” Contractors and their counsel should take this into consideration when exchanging text messages.

 

Source—

LOL! OMG. HUH? Court finds That Text Message Can Form Binding Contract, Matthew DeVries, BEST PRACTICES CONSTRUCTION LAW, June 24, 2016.

SHARE

Share on Email
Share on Linkedin
Share on Facebook
Share on Pinterest
Share on Twitter
← Previous Article Next Article →
Latest News Latest NewsNews

Biden Vows To Speed Environmental Reviews

WASHINGTON, D.C. – A new press release from the White House outlines a plan to release a new Permitting Action Plan to strengthen and accelerate Federal permitting and environmental reviews.

Latest News Latest NewsNews

AGC Urges End To Tariffs

ARLINGTON, VA - Prices of materials and services for nonresidential construction leaped nearly 21 percent from year-ago levels, according to an analysis by the Associated General Contractors of America of government data.

Latest News Latest NewsNews

Biden Vows To Speed Environmental Reviews

WASHINGTON, D.C. – A new press release from the White House outlines a plan to release a new Permitting Action Plan to strengthen and accelerate Federal permitting and environmental reviews.

Latest News Latest NewsNews

Pandemic Lessons Loom

LAS VEGAS – Everyone hopes the pandemic is a once-in-a-century event, but contract language never sleeps. Construction attorneys, contractors, and governments can learn from pandemic issues in a variety of ways.

Latest News Latest NewsNews

AGC Calls For Tariff Relief

AGC urged the Biden administration to relieve major cost pressures by removing remaining tariffs.

Latest News Latest NewsNews

Industry News: $125K Fine; White House Budget; Giordano Appointed

NEW YORK – New York Attorney General Letitia James announced via press release that her office secured $125,000 from a contractor who skirted diversity requirements.

Latest News Latest NewsNews

Pete Fowler Construction Services – A Problem Solver

SAN CLEMENTE, CA – After 25 years in the consulting business, the employees at Pete Fowler Construction Services (PFCS) have seen a lot. While much has changed since the San Clemente-based consulting firm opened its doors in 1997, some things r
Latest News Latest NewsNews

Supply Chain Delays: What Claim Issues Are You Seeing?

In many industries, the “supply chain” mantra is familiar and persistent. This month we continue the topic with a focus on claims specifically related to delays.

SHOW INFORMATION

SIGN UP

Register now for the opportunity to connect with thousands of atttendees and vendors

Sign Up
Sponsor / Inquire
FOLLOW US ON
  • Follow
  • Follow
  • Follow
© 2022 Emerald X, LLC. All Rights Reserved.

ABOUT    CAREERS    AUTHORIZED SERVICE PROVIDERS   TERMS OF USE   PRIVACY POLICY