Gleason v. Freeman
United States District Court for the Western District of Tennessee
2008 WL 2485607
Sellers Freeman and Hazen (defendants) listed their home on an online auction site whose terms specified real estate listings were mere advertisements, not binding offers, even though the listing itself contained language suggesting it was a binding contract; when buyers Gleason, Geller, and Silvanderson (plaintiffs) contacted the sellers' agent, the agent clarified the listing wasn't binding and that the language was meant only to deter frivolous bids. After the buyers placed the winning bid, the sellers' attorney sent a proposed contract, which the buyers filled in with a deposit amount and modified by crossing out a term before returning it; the sellers then sold to another party, and the buyers sued for breach of contract, fraud, and negligent misrepresentation, with both sides moving for summary judgment on the contract claim.
Whether ongoing modifications and negotiations over a proposed contract's terms show a lack of mutual assent sufficient to defeat formation of a binding contract.