...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...
Words: 1017 - Pages: 5
...Mutuality of Consideration [Facts] On February 1st, Bernie put his 2006 Ford Fusion up for sale. Vivian contacted Bernie on March 1st interested in purchasing his vehicle. Bernie extended an invitation to Vivian on March 5th for them to meet in order to further discuss negotiations. Vivian met up with Bernie at his place of residence on March 10th, they agreed on a purchase price of $12,500. Vivian informed Bernie that she needed an additional three weeks in order to obtain the funds. Bernie agreed to give Vivian until March 31st to purchase the vehicle under the condition that she put down a $1,000 deposit. Vivian agreed to the contract terms written by Bernie as shown below. 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. Two weeks after the contract was signed, Vivian contacts Bernie to inform him that she will not be able to purchase the vehicle. Bernie refuses to refund Vivian’s $1,000 deposit based on the contract they agreed upon. [Issue] The issue is whether, under Virginia law, there was sufficient mutuality...
Words: 936 - Pages: 4
...car paid off by March 31st. In the agreement it is stated that if the buyer breaches the agreement, the seller may keep the buyer’s deposit, but the parties shall be limited to this remedy and only this remedy. Likewise, if the seller breaches the agreement, the seller must refund the purchaser’s deposit, but the parties shall be limited to this remedy and only this remedy. Vivian reads and signs the agreement. Later Vivian realizes that she is not going to be able to get the money together by the deadline. She calls Bernie to tell him that she is pulling out of the deal. Bernie says he is going to keep the deposit. Vivian sues for her deposit claiming there was no mutuality of consideration for the agreement and that the contract was therefore void. Issue Under Virginia law is Vivian correct in stating that there was no mutuality of consideration in the agreement between her and Bernie? Applicable law In American Agriculture Chemical Co. v. Kennedy & Crawford, 103 Va., 176, 178 (1904), the contract for the sale of fertilizer stated that the seller: …reserved the right to cancel this contract at any time we may deem proper, but in the event of such cancellation the provisions of this contract shall govern the closing of all business begun thereunder. The Court stated that, as the plaintiff had the right to cancel at any time, the plaintiff never bound himself to the sale. “In the absence of such obligation on the part of the plaintiff, and of such...
Words: 1097 - Pages: 5
...Fusion for sale at the asking price of $13,500. On March 1, Vivian calls and offers to purchase the vehicle for $12,000. Bernie invites Vivian to meet on March 5, to complete the negotiation and transaction. Vivian shows up at Bernie's house on March 10, and after some negotiation, she tells him that she will pay $12,500 for the car but will need three more weeks to raise the money. Bernie agrees to wait, but only if Vivian puts down a $1000 deposit. Vivian agrees and Bernie drafts one page agreement. Bernie wants to keep his options open so he puts the following language into the agreement. Bernie agrees to sale his 2006 Ford Fusion to Vivian for $12,500 and Vivian agrees to purchase the same vehicle 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 signs the agreement, and gives Bernie a $1000 check. Two weeks later, on March 24, Vivian calls and tells Bernie that she is pulling out of the deal. Bernie tells her that's fine, but that he is keeping the deposit in accordance with our agreement. Vivian sues for her $1000 deposit back, claiming there was no mutuality of consideration and the contract is therefore...
Words: 343 - Pages: 2
...Facts Bernie placed an ad in his local newspaper advertising his 2006 Ford Fusion for sale for $13,500. Vivian calls him a few weeks later and offers to purchase the vehicle for $12,500. Bernie and Vivian enter into a contract on March 10th that states “Vivian shall buy the 2006 Ford Fusion for $12,500; the transaction shall take place no later than March 31. In the event that the seller breaches the agreement, the seller must refund the purchasers deposit, but the parties shall be limited to this remedy and only this remedy. In the event the buyer breaches the agreement, the seller may keep the buyers deposit, but the seller shall be limited to this remedy and only this remedy.” Vivian read and signed the contract and gave Bernie a check for $1000. Two weeks later Vivian is unable to come up with the funds to buy the car. On March 24th, she called Bernie to inform him that she is pulling out of the deal. Bernie lets her know he is keeping her deposit in accordance with their agreement. Vivian is claiming there was no mutuality of the contract and therefore it is void. Issue Presented The issue in this case is under applicable law in Virginia, is whether there was mutuality of consideration in Bernie and Vivian’s transaction. Applicable Law In Gay Nineties, Inc. v. International Dining Club, 21 Va. Cir. 492 (Va. Law & Eq. Ct. 1973),A dining club and a corporation entered into contract to provide goods and services for the members of the dining club in exchange for the...
Words: 915 - Pages: 4
...Contract Law (Mutuality of Consideration) November 7, 20013 SUMMARY OF FACTS Bernie is selling his 2006 Ford Fusion. Vivian makes an offer to buy Bernie’s car for $12,000. Bernie and Vivian meet and agree on the selling price of $12,500. Vivian needs more time to come up the money for the car. Bernie agrees to give Vivian time to come up with the money to purchase his car. Bernie requires Vivian to put down a $1,000 deposit and pay the full balance by March 31st. Bernie drafts up an agreement; and in the agreement and it is stated that if the buyer breaches the agreement, the seller may keep the buyer’s deposit, but the shall be limited to this remedy and only this remedy. Likewise, is the seller breaches the agreement, the seller must refund the purchaser’s deposit, but the parties shall be limited to this remedy and only this remedy. Vivian reads and signs the agreement. Later Vivian realizes that she is not going to be able to get the money together by the deadline. She call’s Bernie to tell him that she is pulling out the deal. Bernie says he is going to keep the deposit. Vivian sues for her deposit claiming there was no mutuality of consideration for the agreement and the contract was therefore void. ISSUE Under Virginia law is their mutuality of consideration when the seller could back out of the agreement by giving the purchaser her deposit back. Rule |Sayres v. Wheatland Group |L.L.C. | OVERVIEW: Defendants sought to apply...
Words: 2144 - Pages: 9
...Background Stacey buys a coffee machine on credit. It has been used for a month and find major quality problems. Sam plays a role of a guarantor for Stacey. Rules &Application The situation requires the application of SGA implied conditions and the Consumer Guarantees under the ACL. Under SGA: To form a contract, there are three elements need to be satisfied: goods, money consideration and transfer of property (s6 SGA). In this case, it is obvious that a sale of goods contract has been formed because it meet all the requirements of s6 SGA. Firstly, the coffee machine is a physical item of property and constitutes goods. Then, Stacey paid money for acquiring it, and it constitutes money consideration. At last, Stacey has acquired the ownership of the coffee machine. Under ACL: To be a consumer, a person needs to satisfy either of two elements. One is the price of the goods or services does not exceed $40,000; or the goods or services are of a kind ordinarily acquired for personal, domestic, or household use.(Section 4B of the Competition and Consumer Act 2010) In this case, Stacey is expected to pay $100 per month over three years and the total price is $3,600 which is less than $40,000. Therefore, Stacey should be regarded as a consumer. Here, several SGA implied conditions and Consumer Guarantees under the ACL have been breached. First, the coffee machine is not of merchantable quality under s19(3) of the SGA (David Jones v Willis ) and not of acceptable quality...
Words: 1073 - Pages: 5
...CLASSIFICATION AND REMEDIES OF TERMS GOH KAH LING* The writer has discussed that contract is a legally enforceable agreement that meets certain specified legal requirements between two or more parties. Terms of contract are statements that made by one party in order to encourage the other party to enter into the contract. It should be clear, promissory and capable of acceptance. Terms of contract can classified as conditions and warranties. Conditions terms are term of major importance which goes to the root of the contract. It entitles innocent party to terminate the contract and sue for damages. Warranties term is a subsidiary term of the contract. It will compensate the innocent party for any loss or inconvenience. It is a hybrid term, sometimes assuming the characteristics of a condition and at other times the characteristic of a warranty. Severity of breach of intermediate terms depends entirely on the legal consequences of the actual situation Breach occurs where a contract has come into being and one or other of the parties fails to perform all or some part of the obligations under it. There are four main remedies available to the wronged party: Specific performance, injunction, damages and restitution. CONTENTS I | Introduction | 2 | II | Terms | 2 | III | Conditions Terms | 3 | IV | Warranties Terms | 4 | V | Intermediate Terms | 5 | VI | Remedies | 7 | | (i) Specific Performance | 7 | | (ii) Injunction | 8 | | (iii) Damages | 8...
Words: 4137 - Pages: 17
...Legal Writing Legal Brief Assignment No. 1 FACT: On February 1, Bernie puts an ad in his local newspaper, advertising his 2009 Ford Fusion for sale for a $13,500 asking price. After waiting for a few weeks with no offers, on March 1, Vivian calls him and offers to purchase the vehicle for $12,000. Bernie invites Vivian to meet him on March 5 to complete the negotiation and transaction. On March 10, after Bernie and Vivian negotiation, Vivian made a counteroffer. She is willing to pay $12,500 for the car; but, she needs another three weeks to raise the money. Bernie agrees to wait, but only if Vivian would put down a deposit of $1,000. Vivian agrees and Bernie hastily drafts a one page agreement. Bernie would like to keep his options open in case he gets a better offer, so he puts the following language into the agreement: * Bernie agrees to sell his 2009 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 signs the agreement and gives Bernie a check for $1,000. However, two weeks later, Vivian realizes that she's not going to...
Words: 388 - Pages: 2
...negotiation agreement stipulated that no distribution contract existed unless it was in writing. Just three days before the expiration of the 90-day period, the parties reached an oral distribution agreement at a meeting. Chou offered to draft the contract that would memorialize their agreement. Before Chou drafted the agreement, a BTT manager sent Chou an e-mail with the subject line “Strat Deal” that repeated the key terms of the distribution agreement including price, time frames, and obligations of both parties. Although the e-mail never used the word contract, it stated that all of the terms had been agreed upon. Chou believed that this e-mail was meant to replace the earlier notion that he should draft a contract, and one month passed. BTT then sent Chou a fax requesting that he send a draft for a distribution agreement contract. Despite the fact that Chou did so immediately after receiving the BTT fax, several more months passed without response from BTT. BTT had a change in management and informed Chou they were not interested in distributing Strat. READ ENTIRE DOCUMENT BELOW (2.1) FOR SUPPORTING EVIDENCE: 2.1 The law provides certain relief for aggrieved parties that suffer losses as a result of another party’s breach of contract. These relief mechanisms are collectively referred to as remedies. Recall the distinction discussed in Chapter 1 between remedies at law and remedies in equity. For many contracts, the remedy at law...
Words: 2114 - Pages: 9
... 8-7). How can sales agreements be breached and how can they be remedied? I. A breach is nonperformance in a contract. a. A buyer breaches a sales contract when she does any of the following: i. Rejects the goods despite the fact the goods conformed to the contract specifications ii. Wrongfully revokes an acceptance iii. Fails to pay the seller in accordance with the contract iv. Fails to meet her obligations under the contract II. A remedy provides relief for parties that have acted in good faith and sustained damages through no fault of their own. The UCC allows the seller more than one remedy: a. If good are in hands of seller, the seller may: i. Cancel the contract outright or discontinue his own performance ii. Resell the goods at a fair market value to another party or dispose of the goods for recycling in accordance with reasonable commercial standards of the industry iii. Recover any incidental damages related to the exercise of the reselling remedy such as hard costs of resale and any difference in value between the original contract price and the resale price iv. If the seller is unable to sell the goods at fair market value, then he may recover the full value of the contract from the buyer. If the seller exercises this remedy, he may no longer...
Words: 1007 - Pages: 5
...Breach of Contract & Remedies 1 Breach of contract Nature of breach A breach of contract occurs where a party to a contract fails to perform, precisely and exactly, his obligations under the contract. This can take various forms for example, the failure to supply goods or perform a service as agreed. Breach of contract may be either actual or anticipatory. Actual breach occurs where one party refuses to form his side of the bargain on the due date or performs incompletely. For example: Poussard v Spiers and Bettini v Gye. Anticipatory breach occurs where one party announces, in advance of the due date for performance, that he intends not to perform his side of the bargain. The innocent party may sue for damages immediately the breach is announced. Hochster v De La Tour is an example. Effects of breach A breach of contract, no matter what form it may take, always entitles the innocent party to maintain an action for damages, but the rule established by a long line of authorities is that the right of a party to treat a contract as discharged arises only in three situations. The breaches which give the innocent party the option of terminating the contract are: (a) Renunciation Renunciation occurs where a party refuses to perform his obligations under the contract. It may be either express or implied. Hochster v De La Tour is a case law example of express renunciation. Renunciation is implied where the reasonable inference from the defendant’s conduct is that he no longer intends...
Words: 1755 - Pages: 8
...Atiyah: Sale of Goods The Sale of Goods 11th ed Patrick S. Atiyah , John N. Adams , Hector MacQueen ISBN13: 9780582894082 Published: April 2005 Publisher: Pearson Higher Education £47.95 Buy Note: Cases linked in the text on the right are either to BAILII reports (where available) or the Wikipedia reference. Contract Text Contents 1. Introduction 2. The Contract of Sale 3. Terms of the contract 4. Exclusion Clauses 5. Title and Passing of Property 6. Retention of Title 7. Nemo Dat 8. Performance of the Contract 9. Remedies of the Seller 10. Remedies of the Buyer 11. Articles on Sale of Goods and Contract issues 12. Drafting Sale Contracts and specimen sale contract Sponsors Student Subscription Subscribe to the 2009 Weekly Law Reports & Receive All Parts for 2008 Free! That's just £90 (£96 overseas) for two years' worth of parts (standard UK subscription cost for 2009: £450). Contact: 0207 242 6471 Recent Case Law Cases on Sale of Goods and Contract 2009 - 2000 Statutes Sale of Goods Act 1979 Sale and Supply of Goods Act 1994 The Sale and Supply of Goods to Consumers Regulations 2002 Unfair Contract terms Act 1977 Factors Act 1889 Part III Hire Purchase Act 1964: ss.27 - 29. Companion Volume The Law of Contract Monday August 19th 2013 6. Terms of the Contract There are few formalities in...
Words: 29335 - Pages: 118
...Contract law is that body of rules that govern contractual agreements between persons or merchants. A contract is basically an agreement between parties outlining their duties and responsibilities to one another. Contracts can be formed for nearly any type of interaction. Thus, contract laws may address various transactions for the sale of goods and services. Contract laws outline what a person can or cannot include in a contract, and what the remedies are if a party breaches their contractual duties. In contrast, tort laws govern situations where one person has harmed or injured another person. Tort laws cover violations where the party intentionally harmed the other person, such as in a battery claim. Tort laws also address incidents where the party may be held liable even if they did not act intentionally, such as in negligence claims or strict liability claims. Tort laws usually result in the liable party paying the victim monetary damages to compensate for their losses. Similarities of Contract laws and tort laws Contract laws and tort laws share many similarities. At the most basic level, both contract and tort laws usually deal with a duty that has been breached. With contract violations, the breach has to do with the duties that have been named in the contract. For example, a contract may state that one party has the duty to pay the other for repair services, and the other party has a duty to perform the services. If also party fails to perform their duties, contract laws...
Words: 351 - Pages: 2
...* Chapter 20: The Formation of Sales and Lease Contracts - When we turn to contracts for the sale and lease of goods we move away from common law and into the area of statutory law. - UCC article 2: on sales, 2A: on leases - The goal of the UCC is to simplify and streamline commercial transactions, allowing parties to form contracts without observing the same degree of formality used in other types of contracts by making laws governing sales and lease contracts clearer, simpler and more readily applicable to the difficulties that can arise during such transactions. The Uniform Commercial Code (1949) Comprehensive Coverage of the UCC UCC: single most comprehensive codification of laws involved in total commercial transaction Views commercial transaction for sale and payment of goods as a whole Article 1: General Provisions Definitions and general principles applicable to commercial transactions, including an obligation to perform in “good faith” all contracts un the UCC Provides basic groundwork for the remaining articles A Single, Integrated Framework for Commercial Transactions UCC attempts to provide a consistent and integrated framework of rules to deal with all phases ordinarily arising in a commercial transaction Many sections from the different articles can apply to a single transaction Periodic Revisions of the UCC To clarify certain rules or establish new rules when changes in business customs have rendered existing UCC provisions inapplicable ...
Words: 9821 - Pages: 40
