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Contract Assignment

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Submitted By enovara
Words 1017
Pages 5
From: Erin N
To: Contracts Course grader
Date: 12/13
Re: Assignment 1

MEMO

FACTS

Bernie lives in Richmond, VA and he decides on February 1 to advertise the sale of his 2006 Ford Fusion for $13,500 in the local newspaper. After several weeks and no offers he gets a call from Vivian on March 1st offering to purchase the car for $12,000. Bernie realizes he may not get any other offers and sets up to meet with Vivian on March 5th to complete the sale transaction.

After the negotiations, Vivian agrees to pay $12,500 for the car but needs another 3 weeks to get the money. Bernie agrees to wait if Vivian agrees to put down $1,000. Vivian agrees and Bernie drafts the one page agreement. Bernie stills wants to keep an open mind that someone will give him a better offer in the meantime and writes the following in the agreement:

“Bernie agrees to sell his 2006 Ford Fusion to Vivian for $12,500 and Vivian agrees to purchase the same for such price. The transaction shall take place no later than March 31.

In the event that the seller breaches this agreement, the seller must refund the purchaser's deposit, but the parties shall be limited to this remedy and only this remedy.

In the event that the buyer breaches this agreement, the seller may keep the buyer's deposit, but the seller shall be limited to this remedy and only this remedy.”

Vivian reads and agrees by signing the contract. She then gives Bernie a check for $1,000. Shortly after this agreement, she realizes she will not be able to come up with the remaining amount of money and calls Bernie on March 24th to cancel her part of the contract. Bernie says “Okay but I’m keeping the $1,000 deposit as part of our contract agreement.” Vivian sues for her $1,000 back claiming there was no mutuality of consideration of the contract and therefore is void.

ISSUE

The issue is, whether under

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