Will A Text Message Agreement Hold Up In Court

Given that a real estate contract must be drafted under State contract law, the importance of this decision would determine that text messages are legally equivalent to bilateral contracts written in ink and paper. The exchange of messages should be carefully analyzed to see if it is a binding offer and acceptance, but the fact that it is a text message and not a piece of paper is irrelevant. Alternatively, if you agree to wash your car or walk your dog in exchange for debt relief, you would have a binding contract and the texts would be proof of that. Even more relevant, if your agreed payment meant that the landlord received their money (or part of it) earlier than they would otherwise, then that would be a valuable consideration. Text messages can also be used to negotiate and accept bilateral agreements. Bilateral agreements accepted by SMS, such as written agreements, have an offer, consideration, contractual capacity and acceptance. In 2016, St. John`s Holdings, LLC vs Two Electronics, LLC set a precedent for text messages to be valid legal documents. In the appeal, the Massachusetts Court of Appeals focused on its analysis of whether the letter of intent sent by email, along with the text message, was sufficient to comply with the Fraud Act, which requires that all land purchase contracts, such as the building, in this case, be required in writing to be enforceable. In its decision, the court ruled that a binding contract was created because the letter of intent detailed the terms of the agreement and the text message was signed by the seller`s broker. Remember that a basic binding contract must include four elements: there must be an offer, the acceptance of an offer, a counterparty, and the intention of the parties to create a binding relationship.

In St. John`s Holdings, the Tribunal held that the fundamental elements of contract formation had been fulfilled. Analysis of the jurisprudence of the Electronic Signatures Act and St. John`s Holdings v. Two Electronics LLC makes it clear that text messages can be used to send and accept unilateral and bilateral contracts. The term “contractual” should always be used when negotiating or refining a binding agreement by SMS. In this way, the intention to negotiate or modify the offer is clearly understood. At Katz Law Group, we`ve helped many companies ensure that their texts don`t inadvertently lead to contracts. We can adapt a language to your company that keeps you away from the contractual obligation and allows you to correspond freely without having to think twice about the effects of such communication. Feel free to call us at 508-480-8202. .