Question

A commercial property is listed with Rockwell Realty at $ 70,000. Rockwell Realty negotiates with Woods who is familiar with the property and who agrees to buy the property at that price. Rockwell Realty prepares an agreement of sale which is signed by Woods, the buyer. Copies are then mailed to Downes, the owner for signature on May 31, 2007. The copies are received by Downes on June 3, 2007. He signs and mails the signed copies to Woods the same day. The copies are received by Woods on June 5, 2007. On June 4, 2007, Downes wired Woods, "Offer withdrawn, property not for sale". Under these circumstances:_______

Answer 1

Answer:

An enforceable contract exists, because Downes wired Woods the cancellation after he had mailed the signed contract. Downes signed the contract on June 3rd and mailed it that day, and the cancellation was made on June 4th. It doesn't mater if the mail with the written contract was received at a later date, the date that matters is when the mail was sent (June 3rd).

Therefore, Woods is entitled to purchase the land and Rockwell Realty is entitled to a sales commission.