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Does an acknowledgement via email constitute a binding agreement?

  • Last Updated:
  • Jan 31st, 2020 10:43 am
[OP]
Member
Feb 18, 2019
279 posts
289 upvotes

Does an acknowledgement via email constitute a binding agreement?

Obviously RFD is not proper legal advice, and IANAL, but quick question for anybody who could help. Here's the situation:

- My employers company is being purchased by a larger company, but this process will take some time to complete.
- In the Letter of intent to purchase, one of the conditions is that I have a retainer agreement in place with the purchasing company during the transition period.
- This purchase agreement was signed weeks ago by existing employers CEO, and purchasing companies CEO, and is moving forward.
- Purchasing company has agreed to my retainer terms via email, saying "we accept your terms as outlined above", however, when I sent over an agreement (and a reminder email a week later) for them to sign the retainer agreement, this never came back.

So my question is, how binding is their acknowledgement email without an actual signed agreement? Are they obliged to pay me? On the flip side of that, what if I move on with another offer? Could I be penalized or could it affect the purchase agreement? As a retainer agreement is a condition in the purchase agreement, is the purchase agreement even binding without the retainer agreement in place?

Thanks!
4 replies
Deal Addict
Oct 6, 2015
2452 posts
1339 upvotes
Do you want to spend a few years in court to enforce it? Even if it is 'binding' in the sense of the law.... If they want you and respect you, they'll give you a proper actual signed agreement. Otherwise, I wouldn't personally advise you do anything under the belief that you actually have a job.

I don't know why you wouldn't just ask the acquiring company to give you a proper offer.
Deal Fanatic
User avatar
Oct 16, 2008
7191 posts
2113 upvotes
Maple
Paper contracts/agreements speak louder.
[OP]
Member
Feb 18, 2019
279 posts
289 upvotes
I think I have my answer. Thank you for the replies all!

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