In the fast-paced world of business, timing can make or break your success. Whether you’re launching a new product, pitching a deal, or selling your company, being too early or too late can cost you more than just opportunities—it can cost you real dollars. In today’s landscape, where competition is fierce, interest rates fluctuate, and markets shift in the blink of an eye, understanding the value of timing is more crucial than ever.
This principle isn’t just a modern insight—it’s deeply embedded in contract law and exemplified by the landmark case Dickinson v Dodds (1876). The case may date back nearly 150 years, but its lessons are just as relevant for today’s small business owners and entrepreneurs, especially in Seattle’s dynamic and competitive market.
Let’s dive into what happened in Dickinson v Dodds, why it matters, and how you can apply these timeless lessons to your business today.
Dickinson v Dodds: The Case That Proves Timing is Everything
In 1876, Dickinson (a potential buyer) received an offer from Dodds (the seller) to purchase a property for £800. Dodds said he would keep the offer open until 9am on Friday. But before Dickinson accepted, he learned from a third party that Dodds had already sold the property to someone else.
Dickinson, still thinking he had until Friday, rushed to accept the offer early that morning—only to be told it was too late. He sued, arguing the offer was still valid. But the court ruled in favor of Dodds. The reasoning? Dodds had never promised to keep the offer open without consideration (a legal term for something of value given in exchange). Since Dickinson hadn’t given Dodds anything in return for holding the offer, Dodds was free to sell the property at any time.
Why Dickinson v Dodds Still Matters Today
In modern business—especially in a city like Seattle where startups, tech firms, and small businesses compete in a crowded marketplace—the Dickinson v Dodds case serves as a stark reminder: time has value, and you need to protect it in your agreements.
Here’s how that plays out today:
- Offers Don’t Last Forever: If you’re negotiating a deal—whether it’s buying property, securing a loan, or acquiring a business—don’t assume an offer is good indefinitely. Unless you’ve paid for an option (an agreement to hold the offer open), the other party can walk away at any time.
- In Real Estate: Especially in volatile markets like Seattle, a property you have your eye on today might be gone tomorrow. If you’re serious, move quickly—or negotiate a formal option to secure it.
- In Startups: If you’re seeking funding, investors may change their minds or find other opportunities. If you’re offered terms, formalize them quickly. Verbal promises or informal emails aren’t enough.
- For Small Business Owners: When you’re growing your business, time-sensitive deals like vendor discounts, bulk purchase rates, or even service agreements often have expiration dates. If you don’t lock them in, you risk losing out.
What Entrepreneurs Should Do
- Formalize Agreements in Writing: Don’t rely on verbal agreements or vague promises—get clear, signed contracts that outline terms, timelines, and expectations.
- Understand the Role of Consideration: If you want someone to hold an offer open (like a landlord agreeing not to lease a space to someone else for a few weeks), offer something of value in return. That’s the legal “glue” that makes the agreement enforceable.
- Act Quickly When Opportunity Knocks: Seattle’s market is fast-moving. Whether you’re buying commercial space, hiring talent, or forming partnerships, time is often of the essence. Don’t sit on decisions for too long.
- Work with Legal and Financial Advisors: A trusted CPA and business attorney can help you navigate these complexities—whether it’s structuring contracts, managing cash flow, or understanding tax implications in Washington State.
The Bottom Line
Dickinson v Dodds teaches us that time isn’t just a number on a clock—it’s a critical component of business negotiations and legal agreements. If you’re an entrepreneur or small business owner in Seattle or the greater Pacific Northwest, make sure you understand how timing affects your deals—and don’t let opportunities slip through your fingers.
Photo by Agê Barros