A Louisiana realtor is being sued for breach of contract because she allegedly backed out of an agreed upon sale of a piece of property the realtor owned. The man suing the realtor alleges he made an offer on the property the realtor both owned and listed. After a counteroffer was made by the realtor, a contract was allegedly executed for the sale.
Following execution of the contract, both parties continued to discuss modifications; however, the realtor then rejected the contract, which she referred to as an offer, and accepted a more favorable contract from a third party. The realtor has been accused of breach of contract and the buyer is seeking damages, including ten percent of the sale price, commissions and attorney fees.
A valid contract is based on several important elements and two of those elements include offer and acceptance. All valid contracts, including sale contracts and real estate contracts, include these elements. It is important when entering into a purchase or sale to understand the elements of a valid purchase contract, how a contract is formed and how a party can protect itself when negotiating business contracts, particularly should the sale involve an important business asset or commercial real estate.
Many people approach a contract with every intention of overseeing a smooth transaction. They likely do not anticipate a contract dispute that could ultimately lead to litigation. It is important to keep in mind that without the proper understanding of the contract formation process, problems can sometimes arise. Knowledge of what to expect, and how to handle any challenges that might arise, can be invaluable to the completion of a successful transaction.
Source: The Louisiana Record, “Realtor sued after allegedly breaching sale contract on own property,” Kyle Barnett, June 10, 2014