Legal Question in Business Law in New York

Re: Effect of Binder

To fully answer your question, you would have

to review the entire contract, which is

usually 4 pages long, plus addenda. Many

of the provisions in the contract give each

side an out. This does lead to occasional

"bumping". This occurs when an offer for

more money is made without contingency and

you are asked to remove your contingencies.

If you remove your contingencies, the second

offer must be rejected. If you do not,

then you are "bumped" and the second

contract takes over.

Re: Effect of Binder

First, since you are relying on a document, it will be difficult to answer the question without reading the specific language.

Second, assuming that the binder you are referring to is "an agreement to agree," it is not binding on any party. Most brokers like to use a binder for the benefit of themselves and not their client. The binder constitutes evidence of a ready, able and willing purchaser, allowing the broker to obtain his or her commission.

Mike.