In today’s age of instant updates and social media, people everywhere are communicating about business affairs regularly through their smartphones. But is that enough to establish an enforceable contract? Recently, a court decided it was time to address the issue.

  • The Court – the Massachusetts’ Land Court
  • Parties Involved – St. John’s Holdings, LLC v. Two Electronics, LLC.
  • The Findings – The court ruled that a string of text messages can be sufficient to constitute writing under the Statute of Frauds that binds parties to sell a certain property.

 

New-Age Real Estate

In most states, the general rule is that contracts for the sale of land are only enforceable if they are supported by writing that both includes the essential terms and is signed by the party in which enforcement is sought.

The suit came when the Seller decided to sell to a third party when there was already an ‘agreement’ to sell to the Buyer. The Massachusetts’ Land Court concluded that a text message from Seller’s agent was writing that, when read in the context of email exchanges between the parties, contained sufficient terms to create a binding contract between Seller and Buyer. Additionally, the court found that the final text message contained a valid electronic signature to be “signed” within the meaning of the law.

 

Vanguard Title protects customers from real property title defects and forgeries by providing accurate real estate data, quality escrow services, and insurance against losses. Contact us today at either of our locations – Auburn Hills (248) 751-1000, or Brighton (810) 225-8461.