FACTS:                 

A seller received multiple offers on a property. The listing agent advised the seller to respond with the AAR Multiple Counter Offer form. The listing agent sent the Multiple Counter Offer through an electronic signing program for the seller’s signature.

The listing agent and seller failed to realize that a seller’s signature box was auto-populated throughout the Multiple Counter Offer wherever the seller could sign. The seller signed the Multiple County Offer electronically, including the signature line on page two, under the “Seller Final Acceptance” section.

The listing agent then sent the Multiple Counter Offer to two (2) different buyers. Now, both buyers are claiming they have an accepted contract because the seller signed page two, indicating seller gave Final Acceptance.

ISSUE:                  

Did the seller sell the house to two (2) different buyers?

ANSWER:                           

Probably not.

DISCUSSION:    

If one party is operating under a mistake of fact when it signs an agreement, the agreement is voidable if the other party knew or should have known that the first party was mistaken (Parrish v. United Bank, 164 Ariz. 18, 20, 790 P.2d 304, 306 (App. 1990)).

In this instance, the seller countered two (2) prospective buyers with a Multiple Counter Offer. It is likely that the buyers knew or should have known that the seller made a mistake and would not have intentionally provided seller’s Final Acceptance when initially sending out the Multiple Counter Offer. As such, the seller has the option of voiding the contract by providing the buyers notice that the contract is void.