Contract Validity

Hi there,

Would like to tap into the knowledge here and get some advice on what you guys think about this one.

Hypothetical Scenario

A buyer submits a signed contract to the agent who then presents it to the vendor. The vendor in the evaluation process doesn't accept it and the buyer is informed their contract is not the preferred offer. The vendor some time later changes their mind and prefers this original offer.Can they then re-sign this document if they still have it in their possession and make it binding, or is it considered cancelled?

To put this another way, does acknowledgement of the contract being rejected (by the seller) to the buyer) make the contract legally void?

Thanks

D.

 

Need to exchange signed contracts for it to be binding

 

Exchange, as in two signed documents?

 

What state?

If you make an offer and it is accepted then that is the definition of a contract being entered. Contracts for land are only enforceable if in writing of which your signed contract is. However if you withdrew your offer before accepted there is no contract

 

Prevention is better than the cure here. Dont give the seller the opportunity to sit on a signed contract.

 

If you sign/make an offer. Put a time limit on it (expires by this time if not accepted, this offer is good until 3pm on this date) and acceptance must be communicated by whatever form you like.

yes why you get it in writing as an extra protection.

 

So upon being notified the proposal is not preferred, request in writing that it becomes expired?

 

So you're suggesting that a condition be added into the contract stating ïf the submission is rejected it becomes void" or something similar?

 

The legal answer is "maybe".

 

Business Law 101 was years ago.
This offer is good until this time date. After that it expires.
Acceptance must be communicated. So if you don't hear by that time date then no contract. You can specify form of acceptance ie carrier pigeon.
Offers can be withdrawn by you before acceptance. So if you don't hear then withdraw offer Ie via email or phone , best in writing

 

The expiry would be put in the offer, but not necessarily written into the contract itself.

Putting it another way, do the lawyers have examples of where the seller 'ignores' an offer expiry and tries to exchange / enforce a contract by signing after the offer expired?

Dont really imagine the agent would want to play this sort of game, since it would be challenged and the agent wouldnt get paid.

 

If I understand this right, you had a contract presented to you by the buyer that was not signed by them, you signed it but then cancelled it before they could. Doesn't the contract normally get presented to the vendor pre- signed by the buyer?

 

One in NSW , the other in QLD

 

Which side are you sitting on? Seller or buyer? And what are you trying to achieve?

If you are a seller and want to know when you can shop an offer to other potential buyers or want to know how to keep an offer in reserve, just come right out and say it.

 

Buyer , contract signed upon submission.

I just want to know how long its valid for and what the vendor can do with it if (legally) if they first refuse it but still have it and change their mind.

 

I could request in writing any time though to withdraw the contract though?