United States District Court for the Western District of Tennessee
2008 WL 2485607
Michael Freeman and Cindy Hazen (collectively, the sellers) (defendants) listed their home for sale on an online auction site. Peter Gleason, Uri Geller, and Lisbeth Silvanderson (collectively, the purchasers) (plaintiffs) formed a partnership in order to purchase the home. The auction site’s terms specifically indicated that real estate listings were advertisements, not legally binding offers. However, the sellers’ listing contained verbiage indicating that the listing was a binding contract. The purchasers contacted the sellers’ agent, and the agent clarified that the listing was not a binding contract and that the verbiage was included to deter frivolous bids. The auction site’s terms did not indicate that they could be amended by information contained within the listing. The purchasers entered the winning bid, and sellers’ attorney sent the purchasers a proposed contract. The purchasers filled in their deposit amount, crossed out a term of the contract, and returned the contract to the sellers. The sellers then sold the property to another party. The purchasers sued the sellers for breach of contract, fraud, and negligent misrepresentation. The purchasers and the sellers moved for summary judgment as to the breach of contract claim.
Rule of Law
Holding and Reasoning (McCalla, J.)
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