Court Finds Texts Between Agents Lead to a Binding Contract

Court Finds Texts Between Agents Lead to a Binding Contract

A Massachusetts court recently held that texts between agents created a binding contract between their clients. In that case, the buyer made an offer through a letter of intent. The agents continued to text back and forth with various terms. The seller subsequently declined to sell the property. The buyer filed suit. The court found that the texts between the agents constituted a binding contract.

Agents need to be very cautious in the use of texts and emails. In California, agents cannot bind clients to contracts. However, this is a new field and open to interpretation.

-Shannon B. Jones, Partner, sbj@sbj-law.com