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Keller v. Bones | 615 N.W.2d 883 (2000)

An offer is made. To create a binding contract, the acceptance must come next. Keller versus Bones spotlights the procedural requirements for making an acceptance. The offer required acceptance by a five o’clock deadline. The offerees signed before the deadline, but they didn’t communicate their acceptance to the offeror until afterward. Is there a binding contract?

In the summer of nineteen ninety-seven, Calvin and Audrey Bones listed their Nebraska ranch for sale. Dean Keller submitted an offer to purchase the ranch. Keller offered four hundred ninety thousand dollars and made an earnest-money deposit. Keller’s offer specified that it would be withdrawn if the sellers didn’t accept by five p.m. on July twenty-first. The offer also stated that it would become a binding contract when the sellers signed the document.

July twenty-first arrived. Just seven minutes before the deadline, at four fifty-three p.m., the Boneses faxed a signed copy of the offer to their real estate agent. At five twelve, the agent called Keller to inform him of the Boneses’ acceptance and left a voicemail.

The next day, another buyer expressed interest in the ranch. The Boneses asked Keller if he would be willing to back out of the deal. Keller refused to back out. On the day set for closing, the Boneses didn’t convey Keller the ranch.

Keller sued for breach of contract. He sought specific performance, a remedy that would require the Boneses to sell him the ranch.

The trial court ruled in favor of the Boneses. The trial court reasoned that no contract was formed because the Boneses’ acceptance wasn’t communicated to Keller until after the deadline. The Nebraska Court of Appeals affirmed. Keller appealed to the Nebraska Supreme Court.

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