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Franklin engaged in extensive negotiations with Harlow in connection with the proposed purchase of Harlow's factory...

Franklin engaged in extensive negotiations with Harlow in connection with the proposed purchase of Harlow's factory building. Which of the following must Franklin satisfy to establish a binding contract for the purchase of the property in question?

a. Franklin must obtain an agreement signed by both parties.

b. Franklin must obtain a formal, detailed, all-inclusive document.

c. Franklin must pay some earnest money at the time of final agreement.

d. Franklin must have a writing signed by Harlow which states the essential terms of the understanding.

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Answer #1
  1. In order to form a binding contract, there should be the acceptance of both the parties to the contract in writing.
  2. In order to ensure there is the acceptance of both the parties a document signed by both the parties shall be kept for future reference.
  3. Therefore in order to Franklin satisfy that he established a binding contract for the purchase of the property in question.
  4. Answer is a. Franklin must obtain an agreement signed by both parties.
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