Hendricks v. Behee
786 S.W.2d 610 · Missouri Court of Appeals · 1990
Facts
Eugene Behee offered to purchase real estate from Artice and Pearl Smith, making a $5,000 deposit. The Smiths signed the offer, but Behee withdrew it by notifying the Smiths' real estate agent before Behee received any notice of the Smiths' acceptance. The trial court awarded the deposit balance to Behee, and the Smiths appealed, claiming a binding contract had formed.
Procedural history
Plaintiff Hendricks, as escrowee, initiated an interpleader action against Behee and the Smiths regarding the $5,000 deposit. Behee filed a cross-claim against the Smiths. After a nonjury trial, the trial court awarded Hendricks $997.50 and the remaining $4,002.50 to Behee. The Smiths appealed the trial court's ruling.
Issue
Did a binding contract for the sale of real estate form when the offeror withdrew his offer by notifying the offerees' agent before the offeror received communication of the offerees' acceptance?
Holding
No, a binding contract did not form. The court affirmed the trial court's decision, ruling that Behee's withdrawal of the offer was effective, and the deposit balance was correctly awarded to him.
Rule
An offeror may withdraw an offer at any time before acceptance is communicated to them, especially if the offer is not supported by consideration. Notice to an agent, within the scope of their authority, is considered notice to the principal.
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