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Principles of laws of contract
Principles of laws of contract
Laws understanding contracts
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Issue:
The issue here is whether there was a valid contract between buyer and seller. If this case goes to the court, who is likely to succeed. By assuming that the buyer prevails in his lawsuit against seller, what damages buyer is likely to receive when:
• Seller agreed to the buyer that he has to mail a cheque for $5000 and then pay the balance by 1 November.
• Buyer then mailed Seller a $5000 cheque later that day.
• Buyer's plans to borrow $20,000 from the investor to buy the van.
• Investor agrees to loan $20,000 to the buyer.
• When Buyer called Seller to pick up the van, seller refused and said someone had offered him $35,000 for the van. Seller had not cashed Buyer's cheque yet.
• Buyer claims he will not be able to start his courier service if he did not get the van.
• Later, Seller offered to deposit the cheque and give him the van if Buyer would pay Seller $20,000 now plus $400 a month for 25 months.
Rules:
The rule that will govern the first question would be contract law because it directs towards enforcing a promise. In order to form a valid contract there must be essential elements as follows: offer, acceptance, consideration, Intention to be bound, mutuality, capacity and legality. In this case when considering the issue between the two parties, buyer would be the one enforcing the promise and seller would be the promisee. In Commonwealth of Australia v Amann Aviation Pty Ltd(1991), the plaintiff is entitled to recover damages upon proof of breach of contract. A plaintiff isn’t entitled to be better off as a result of damages award. In Hyde v Wrench (1840), Wrench had Rejected Hyde’s counter offer and was in no obligation to sell.
The rule that will govern the second question would be remedies because it directs...
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...ail against buyer if this case goes to court because there was only oral communication between two parties over the phone but no written acceptance from the seller.
Assuming that buyer prevails in his lawsuit against seller. Buyer is likely to receive special damages for loss of $1200 on cards, flyers, and cell phone and the $50,000 profit because he would not be able to start his courier service without the van. It might be entitled that there was a valid contract so the seller is liable to sell the van for $25,000 which both the parties agreed at the beginning.
References
Ciro, T., Goldwassser, V., Verma, R. (2011). Law and Business (3rd ed) Oxford University Press.
Commonwealth of Australia v Amann Aviation Pty Ltd(1991)
Hyde v Wrench (1840)
Robinson v Harman (1848)
Sweeney, B., O’Reilly, J., Coleman, A. (2010). Law in Commerce (2nd ed) LexixNexis Butterworths.
Our decision was based on determining if there was contract formed and if the terms of said contract were performed by both parties. We found that Abigail placed an advertisement with the intent to lead readers to believe that she was selling “purebred toy breed puppies” for $100, “quoted for immediate acceptance”. Alex responded to Abigail’s advertisement and accepted her offer by submitting the required $100 payment to the P.O. Box, as stipulated in the advertisement, and inquired about when he could pick up
Maria had spoken with Eva over the phone concerning the correct total amount of $60,000 for rendering decorating services provided by Eva. Maria had sent a letter of the telephone conversation stating that Eva agreed to take $60,000 in full satisfaction obligation under the contract. Although Eva, changed her mind when depositing the check in the bank, she legally entered a mutual agreement over the telephone where it resulted in a unliquidated debt, payment is lower than actual.
Friganim Importing Co. v. B.N.S. International Sales Corp. Facts: Friganim Importing Company sued B.N.S. claiming that B.N.S. breached warranties in two contracts that they had entered into. In the first of the two contracts, Frigalimnet had agreed to sell 75,000 pounds of 2.5 to 3 pound chickens and 25,000 pounds of 1.5 to 2 pound chickens. The second contract consisted of 50,000 pounds of 2.5 to 3 pound chickens and 25,000 pounds of 1.5 to 2 pound chickens. (smaller chickens where priced slightly higher in this contract than the first agreement)
This case study examines various real estate contracts – the Real Estate Purchase Contract (REPC) and two addendums labeled Addendum No. 1 and Addendum No. 2 – pertaining to the sale of 1234 Cul-de-sac Lane in Orem, Utah. The buyers in this contract are 17 year old Jon D’Man and 21 year old Marsha Mello; the seller is Boren T. Deal. The first contract created was Jon and Marsha’s offer to purchase Boren’s house. This contract was created using the RESC form, which was likely provided by their real estate agent as it is the required form for real estate transactions according to Utah state law. The seller originally listed the house on a Multiple Listing Service (MLS); Jon and Marsha agreed that the asking price was too high for the neighborhood (although we are not given the actual listing price), and agreed to offer two-hundred and seven-thousand dollars ($207,000) and an Earnest Money Deposit of five-thousand dollars ($5,000). Additionally, the buyers requested that the seller pay 3% which includes the title insurance and property taxes. After the REPC form was drafted, the two addendums were created. Addendum No. 1 is from the seller back to the buyer, and Addendum No. 2 is the buyer’s counteroffer to the seller.
According to the Minnesota Court of Appeals (2005) the written offer is not evidence of a completed contract and therefore no contract existed.
Were the items specially manufactured goods? Is the defendant to blame since the items cannot be sold at any other location? Is the verbal agreement for the sale of goods more than $500 enforceable?
The current situation appears to start out with the buyer’s perception that the seller is dishonest. The buyer asks about the mileage being set back. The seller doesn’t really respond to that comment, but moves past it. I think if he would have made a joke out of it, or made a statement that they don’t practice dishonesty, the seller could have gained more trust. Second the seller appears to be assuming the needs of the buyer. The seller is leading with questions like, “Do you need that much room?” The customer says that they don’t, but is it possible that they do want something more spacious? It is possible. The seller seems to think that the buyer is only buying for gas mileage. The seller is overlooking a key selling point, the buyer is getting into a car pool with their boss. It is probable that the buyer would unconsciously want to buy a car that would make a statement to their boss.
...useless car to a junk yard to recover some loss, but the difference of the re-sale of the junk-car would be a significant loss. Though there were no adequate assurances to the contract, anticipatory repudiation is the only probable remedy for Jack. However, the outcome would weigh on the predominant factor test, which is met because Tom is covered as a merchant because he is operating in his usual daily business, and Jack is the buyer. The sole purpose of the contract was for Tom to sell Jack a car, and for Jack to buy a car from Tom. The UCC, though less stringent than the statute of frauds, does effectively regulate commercial transfers allowing the free market to operate without diminishing the integrity of trade.
In April 2008, Richard and Michelle McCaulley went to Nebraska Furniture Mart, Inc. (NFM) to buy some furniture. The items selected were to be special ordered by NFM and the total price was quoted at $10,770.70 through the phone by a sales associate. The McCaulleys accepted the price and paid a deposit of $3,500 by credit card. However, no documents were signed to finalize the deal and the salesperson did not mention any additional terms of conditions regarding pricing errors. Later, the McCaulleys received an invoice of $13,240.70 for an order on May 6th 2008. Michelle called NFM to complain and was sent a revised invoice of $10,840.70 which was still more expensive, but she accepted it.
My partner and I played the roles of the sellers. Prior to the negotiation we discussed what our reservation point, our BATNA and our target point were going to be. The reservation point was basically given in the write up of the case. We needed $488,000 after taxes or $580,000 before taxes. If we received less than this we would not be able to continue our plans to sail around the world. At this point we had not discussed attempting to make the pie bigger and pursuing the option of working when we return.
In this case, the buyer had to pay back the money he borrowed earlier. Most ordinary people bought... ... middle of paper ... ... earch Complete. Web.
It has become apparent that there is a valid litigation that could be charged against your dealership in regards to possible non-disclosures as made to the said Haskell and the seller.
Handy Andy, Inc., a maker of trash compactors, had a problem with how the distribution of their products was being done by distributors and retailers alike. The company made two models of trash compactors the standard and the deluxe, the latter having more capacity thus a higher price. The distribution of the trash compactor to the end user worked like this, a customer makes an order for a trash compactor through a licensed retailer, once the order is made the retailer buys from the distributor to fulfil that order and then delivers it to the customer. The initial agreement between Handy Andy Inc. and the distributors was based on delivering and installing all units in a period of 5 days after an order was made by a retailer, as compensation
International Trade Law Case Study Introduction International trade transaction is essential for the sale of goods with the addition of an international element. In practice, the seller and buyer are in different countries where the goods must travel from the seller’s country to the buyer’s country by various means of transports. In international sale of goods, they usually transit the goods by sea because of the international transactions. Therefore, contracts for the carriage of those goods must be procured between the seller or buyer and common carrier depending on different types of sale of contracts. Moreover, in most of incidences, the agreed goods are usually insured at a reasonable amount in case of being loss or damaged during the transit.
This judgment given set criterion which is still been used in the modern court system and due to this case it was developed that an offer of contract can be unilateral and doesn’t have to be made to a specific party only. Also it was developed to that the acceptance of an offer does not require a notification and that once the concerned party purchases the product the contract is active then and there itself. And it was also established that purchase of an item is a fine example of consideration and therefore makes it a valid contract. (Smith, 2000).