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Hello,I did a purchase and sale contract for a business.

 

Customer Question

Hello,
I did a purchase and sale contract for a business. The seller and the buyer both signed the agreement. Now the seller is selling the business to another person. The contract said that earnest money was to be paid, but it didnt have a date on when that money neeeded to be given. The earnest money was never given because there was no date for when that money was supposed to be given. Is the contract that was signed not valid?

 

Optional Information:
Country relating to Question: United States
State (if USA): Illinois

Submitted: 252 days and 10 hours ago.
Category: Business Law
Value: $40
Status: CLOSED
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Expert:  JD 1992 replied 252 days and 10 hours ago.

Who drew the contract up, the seller or the purchaser?

Customer replied 252 days and 10 hours ago.

The contract was made by a lawyer and the seller. The seller and the buyer both signed the agreement.

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Expert:  JD 1992 replied 252 days and 9 hours ago.

The contract would still be valid. Any ambiguities or mistakes in the contract would be construed against the party who drew it up under a rule of law known as "the Scrivener's Rule". The purchaser could file for an injunction to stop the sale at this point and the court would have to rule on whether the lack of a date by which earnest money was to be paid is a "material part" of the contract such that the failure to put a date renders it void. However, the court is more likely to rule that the seller is still bound by the contract because they can't cause a problem and then use that problem to break a contract.


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Customer replied 252 days and 9 hours ago.

can you give me more information on the scrivners rule. Also, is there like a set amount of time that earnest money should be paid, or is it a date that the lawyer and seller needs to set up? (The contract was for the purchase of a business in Illinois)

Accepted Answer

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Expert:  JD 1992 replied 252 days and 9 hours ago.

There is no time set by law to pay earnest money. It is supposed to spell it out in the contract.

The scrivener's rules is from old English law and basically says if you are the one that does the contract then anything in there that is ambiguous or subject to more than one interpretation is construed against you because you were the one that had the chance to do it correctly.


If you would like any additional information or have more questions please don’t hesitate to ask but please do so my clicking on the Reply to Expert tab.

We work for Positive Ratings, please click on one of the top three ratings or one of the Smile Faces, as this would be appreciated. We have recently implemented a new rating and feedback system. Please be aware that you are rating my courtesy and service as a professional, and not necessarily whether you like the information that you are receiving. Please bear in mind I can’t control what the law is and whether it helps you, I can only tell you what it says, and I assume you want truthful information.

PLEASE DO NOT use the rating system to ask for more information or in an attempt to tell the website that you didn’t like the substance of the answer as it gives a NEGATIVE rating to me personally if your rating is one of the lower two.

I believe in giving information that is to the point, but please remember that I can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions or for clarifications. Be very careful about looking at other internet sites that just post generic information without any inquiry into your facts because often those answers are dated, wrong, or wrong as applied to your facts. Please be aware that my answer is not legal advice, it is merely information. You should always contact a local attorney for legal advice.

Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR JD 1992” in the subject line and I will pick up the next time I am online.

Expert TypeAttorney
Category: Business Law
Pos. Feedback: 99.5 %
Accepts: 1142
Answered: 8/11/2012

Experience: Began practicing in 1992 and helped a number of businesses with litigation

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