Gresser v. Hotzler
Court of Appeals of Minnesota
604 N.W.2d 379 (2000)
After months of negotiations, the Hotzlers (defendants) signed a proposed purchase agreement for their commercial property and delivered it to buyer Michael Gresser (plaintiff), but Gresser then changed the closing and survey dates on his attorney's advice since the original dates had become impractical due to the lengthy negotiations; the Hotzlers' real estate agent, without any actual or apparent authority to contract on the Hotzlers' behalf, told Gresser the date changes wouldn't hinder the deal. Gresser returned the modified agreement, but the Hotzlers never signed it, even though Calvin Hotzler showed Gresser the property and introduced him as the new owner; the Hotzlers then accepted a different offer, and Gresser sued for specific performance and breach of contract, with the trial court granting the Hotzlers partial summary judgment on the ground that no contract existed.
Whether a contract is formed when a party responds to an offer by proposing modified material terms that the original offeror never accepted.