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Allen R. Krauss Co. v. Fox

Arizona Court of Appeals
644 P.2d 279 (1982)


Allen R. Krauss Co. (Krauss) (plaintiff) offered to buy a piece of land owned by Lillian Fox (defendant) for $265,000 and gave Fox $5,000 in earnest money. Two days later, Fox sent Krauss a written counteroffer to sell the land for $486,000 in cash. Fox’s counteroffer gave Krauss five days to act, stating that the counteroffer would “remain in full force and effect” until 5:00 p.m. on June 3. Krauss signed the acceptance form that accompanied the counteroffer around noon on June 3. At 3:00 p.m. that day, however, Krauss’s real estate agent informed Krauss that Fox had decided not to sell the property after all. Nevertheless, Krauss delivered the signed acceptance form to the escrow agent at 4:15 p.m. When Fox did not in fact sell the property to Krauss, Krauss sued Fox. Krauss sought specific performance, which means Krauss sought to compel Fox to sell the property to Krauss for $486,000. The trial court ruled in favor of Krauss and ordered Fox to sell Krauss the land. Fox appealed.

Rule of Law


Holding and Reasoning

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