Arizona courts to decide legal theory in breach of contract case ...

One of the great qualities of the law is that it can adapt to new circumstances. Technological changes have forced courts to reevaluate how long-standing rules and principles should be applied in modern times. For example, the rules of contract law have been developed by cases over the course of centuries. Now Arizona courts have a role to play in the evolution of these rules, as they must discern what effect an e-mail can have in a contract dispute.

The particular case under consideration involves a couple and their supposed real estate agent. In connection with a search for a new home, the agent sent the couple a contract for them to sign, which named the woman as the couple's exclusive real estate agent. The couple signed the document and e-mailed it as an attachment to the agent, who then failed to sign it. She did send an e-mail response, however, that acknowledged its receipt and thanked the couple.

Later on, while the agreement was purportedly in effect, the couple bought a house in the territory covered by the contract. Arguing that the couple had breached the contract by using another broker, the agent sued the couple.

Under Arizona law, a real estate contract must be signed by both parties in order to be valid. The issue in the case is therefore whether the agent's e-mail response meets the legal definition of a signature, rendering the contract enforceable. Arizona has recognized that electronic signatures are acceptable alternatives to the traditional ink-and-paper.

But whether an e-mail can be considered an electronic signature is not something our courts have decided. Courts in other states have reached differing conclusions on the matter. The Arizona Court of Appeals is expected to take up consideration of the case after it returns from remand to the trial court.

Source: Verde Independent, "Court strikes down validity of email agreements on real estate transactions," Howard Fischer, Oct. 10, 2012

? Parties in business litigation can sometimes find themselves involved in novel arguments and uncharted areas of the law. You can learn more about litigation by visiting my Phoenix breach of contract page.

Source: http://www.behmlawfirm.com/blog/2012/10/arizona-courts-to-decide-legal-theory-in-breach-of-contract-case.shtml

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