Buyer Discussed the Deal With Investor
October, Buyer saw a courier van with a FOR SALE sign that included a telephone number and a price of “$25,000 cash. ” That night, Buyer called Seller.
Buyer explained that he would have to borrow the money but could get It next week. Seller provided his address to Buyer and told Buyer, “If you want the Van, mall me a cheese for $5000. Pay the balance belly November. ” Later that day, Buyer mailed Seller a $5000 cheese.
The next night, at Buyer’s 18th birthday party, Buyer discussed the deal with Investor. After buying the Van, Buyer planned to start a document courier service, and he had spent $1200 on business cards, flyers and a cellular phone.
Buyer projected a profit of $50,000 in the first year. Investor was impressed with Buyer’s plans and agreed to loan Buyer $20,000 to buy the van. On 25 October, 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 cheese as yet.
Seller offered to deposit the cheese and give him the van If Buyer would pay seller $20,000 now plus $400 a month for 25 months. Buyer laughed and said, “Yeah, right. But without a Van, Buyer would not be able to start his courier service. Investor wants to hire you to give Buyer legal advice. Prepare a memorandum addressing the following matters In detail, and Including relevant case law to support your arguments: What are Buyer’s potential claims against Seller? What are Seller’s potential defenses? Who is likely to prevail in the event this case goes to court?
Investor loaned buyer $20,000.
October 25: Seller refused as he had gotten a better offer of $35,000. Seller offered to deposit the buyer’s UN-cashed cheese on conditions for the buyer to pay $20,000 for van $400 for the next 25 months. Buyer refused his new offer. 1 OFF The main issue is this scenario is whether it is a valid contract or not. If yes, then what are the rights and damages available to buyer on breach of contract by seller? The following sections of Australian contract law should be satisfied in order to make this contract valid.
See below) These elements need to be explored to determine whether it is applicable. All the agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void. The person making the offer is known as the offered, reposes, or promise and the person to whom it is made is called the offered or proposes. When the offered accepts the offer, he is called the acceptor or promise.
When at the desire of the promise, the promises or any other person has done or abstained from doing, or does or abstains from doing , or promise to do or to abstain from doing something, such act or abstinence or promise is called a consideration for the promise. Every person is competent to contract if he is an age of majority, Is a sound mind.