Facts: This case emerges from a sale of property in Baltimore City, due to the execution of the letter of intent. Eileen W. Norkunas, the defendant, is the owner of a property known as 835 McHenry Street, Baltimore, Maryland, and Rebecca Cochran, who is the plaintiff, along with Robert Cochran and Robert and Hope Grove, were interested in buying her property. The Buyers, aided by a Real estate agent, send a letter of intent to the Seller, indicating the terms for the offer. The Letter of Intent stated the Buyers proposal to buy the property, and also specified that a standard Maryland Realtors contract would be delivered to the Seller within 48 hours. The Letter also set forth the tax information and the financing requirement…show more content… Norkunas to settle the property with the Buyers, pursuant to the terms of contract within 60 days. Mrs. Norkunas appealed on March 20, 2007 to the Court of Special appeals, stating that the Circuit Court erred in determining the formation of an enforceable agreement between the parties.
Issue: Primarily, did the letter of intent specify the formation of a valid and enforceable contract? And was the Maryland Realtors Contract enforceable and what would a reasonably prudent person, understand from the meaning of the agreement?
Holding/Judgement: The Court of Special Appeals, reversed the Circuit Court, holding that the Letter of intent is not a binding contract between the parties as it states, that the Buyers were to send the Maryland Realtors contract for the formation of the contract and also that the Maryland Realtors Contract cannot be considered as a valid contract as the Seller did not accept the contract.
Court Reasoning: The Court of Special Appeals aimed at determining whether, the party in whose favor judgement was entered is entitled to it as a matter of contract law. However, the Court first, needs to ascertain if the Letter of Intent is enforceable or not, that is, if it is a valid contract under the contract law of Maryland. The Petitioners claim that, since it included offer and acceptance, supported by consideration, contained definite terms and was signed by all