Gresser v. Hotzler

604 N.W.2d 379 (2000)

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Nature of the Case

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Facts

P submitted to D an unsigned, proposed purchase agreement that required D to deliver a recertified survey on August 10, 1998, and provided for closing on September 1, 1998 in the sale of real property owned by D. Ds changed several terms, initialed the changes, signed the purchase agreement, and returned it to P's attorney on August 4, 1998. On August 10, 1998, P initialed D's changes and signed the purchase agreement. P, however, made two additional changes. He changed the survey delivery date to September 10, 1998, and the closing date to October 15, 1998. P initialed both date changes. P made these changes on the advice of his attorney, who had talked to D's realtor. The attorney and the realtor agreed that, because of the time that had elapsed, the original survey and closing dates had become impractical. The attorney knew that the realtor had not consulted D about the changes, and both P and his attorney knew that the realtor did not have the power to bind D. P returned the signed purchase agreement to the realtor on August 12, 1998, along with $2,000 earnest money. P expected that D would initial the date changes and return the purchase agreement to them. D got the agreement and assumed the parties had a deal, but he did not read the purchase agreement. On the afternoon of August 12, 1998, the realtor received another offer for the property, which he forwarded to D. On August 13, D reviewed both documents, decided to accept the new offer, and signed that purchase agreement. P sued for specific performance, and the court held the agreement was invalid. P appealed.