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

November 29—December 1, 2023
The Diplomat, Hollywood, FL

Register 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

CSC Presenter Assesses Latest On Surfside Collapse

Third Thursday sat down with CSC presenter Wayne Kalayjian to get his reaction to the latest findings on the Surfside disaster.

Latest News Latest NewsNews

Advance Registration Rates In Effect For CSC 2023

Advance registration rates are now in effect for Construction Super Conference, scheduled for Nov. 29 – Dec. 1, 2023.

Latest News Latest NewsNews

CSC Presenter Assesses Latest On Surfside Collapse

Third Thursday sat down with CSC presenter Wayne Kalayjian to get his reaction to the latest findings on the Surfside disaster.

Latest News Latest NewsNews

DOL Addresses Extreme Heat: Beneficial For Construction Industry?

The DOL intends to “ramp up enforcement of heat-safety violations” in the work place, including construction sites.

Latest News Latest NewsNews

EDITORIAL: New DOL Davis-Bacon Rule Misses the Mark

This rulemaking critically missed an opportunity to improve the wage determination process.

Latest News Latest NewsNews

Infrastructure Lags, Homebuilding Surges

ARLINGTON, VA - Two types of private nonresidential spending increased significantly in May, while most other categories lagged.

Latest News Latest NewsNews

Building Regs In New York: A Peek Into The Future

NEW YORK, N.Y. - Changes are coming as a result of Nov. 8, 2022 amendments to the building code.

Latest News Latest NewsNews

Newest CSC EAB Member: “Old Pay-To-Play Format Is Long Gone”

As the newest member of the CSC EAB, Wendy Venoit has definite opinions about the kinds of educational sessions that contribute to a successful conference.

SHOW INFORMATION

SIGN UP

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

Register
Sponsor / Inquire
FOLLOW US ON
  • Follow
  • Follow
  • Follow
© 2023 Emerald X, LLC. All Rights Reserved.

ABOUT    CAREERS    AUTHORIZED SERVICE PROVIDERS   DO NOT SELL MY PERSONAL INFORMATION   TERMS OF USE   PRIVACY POLICY