Issue 1
Is Ben allowed to sue Sandy for contract breaching? Did Sandy breach the contract that he had with Ben?
Rule 1
Breaching of contracts can either be willingly or unwillingly. Not fulfilling the task that one has already accepted to perform is a way of breaching the contract. In case of breach of a contract, the other party is allowed to go to court and follow the right procedure to acquire his money back and terminate the contract. Before filing a lawsuit, the plaintiff is supposed to prove two things:
- The other party acted without a just cause.
- The breach of contract will lead to losses; hence, there will be need for compensation.
Application 1
Sandy may be found liable for breach of contract since he can still buy other tractors and give Ben as agreed. However, Sandy can defend himself by stating that he incurred losses from the fire tragedy and he is not in a position to make another warehouse within one day which, in this case, is logical. Despite his losses, Sandy will have to compensate Ben when taken to court.
Conclusion 1
Ben will prove that he incurred losses after the contract was breached and, in this case, compensation would be required. Ben, on the other hand, will explain to the court what happened and his reasons for terminating the contract. The court is likely to pardon Sandy for breaching the contract and give him time to compensate Ben.
Issue 2
Is the agreement between Sandy and Carol valid and enforceable?
Rule 2
An agreement is said to be valid and enforceable if it is valid. A valid contract should have all the elements that are required for a deal to be valid. Aspects of a contract include:
- Offer and acceptance
- Consideration
- Written instrument
- Mutuality and competence
- Obligation
Application 2
The agreement between Sandy and Carol is not valid and enforceable since it was made orally. Although they had an agreement that Carol will sell the seeder to sandy after three months, there is no evidence of any written agreement. Although Sandy may decide to file a lawsuit, the court will find the contract invalid and unenforceable.
Conclusion 2
Because the contract is invalid and not enforceable, the court will not intervene as there is no clear evidence to accuse one party.
Issue 3
Are there legal arguments that can used to avoid completing the sale to Denise?
Rule 3
In case where the terms and conditions of selling the property are changed, it is referred to as a counteroffer. In this case, there is change or valuation of the terms of offer which is a way of rejecting or a condition of accepting. The legal effect of a counteroffer is that the court cancels the original offer.
Application 3
There are legal arguments that can be used to cancel the sale to Denise. When Denise files a lawsuit against Sandy for breaching the contract they had, Sandy can bring in the issue of the counteroffer. Sandy is not willing to sell the piece of land at the agreed price because of the discovered oil. If Denise wants the land, he will have to double the amount.
Conclusion 3
After Denise filed a lawsuit, the court held that there was no agreement between the two parties because the counteroffer made by Sandy to Denise canceled the original offer.
Issue 4
Are there any legal arguments that could be used to avoid enforcing the contract?
Rule 4
For a contract to be considered valid, it must have the elements of validity with all the features of a valid contract, which include written material, offer, and acceptance, obligation, consideration, and mutuality. If one of the parties does not agree with the terms, then the contract is invalid. However, for every term to be considered by the law, it must be enforceable.
Application 4
Although Eugene and Sandy had agreed and signed a contract for a sale of land, the condition had not been written. They did not indicate that if the airport was established, Eugene will buy the land while if not, he would not buy the farm. In such cases, a third party may be required to witness that there was a certain condition before the agreement.
Conclusion 4
In the case of Eugene and Sandy, the court will hold Eugene guilty for terminating the contract since the condition of the airport was not written in the agreement.
Issue 5
Are there any legal arguments that can be used by Sandy to enforce the contract despite the statute of frauds prerequisite?
Rule 5
A valid contract must have all the elements as stated in rule 3 above.
Application 5
In the case of Frank and Sandy, the contract is not valid since it did not have the elements of validity. Therefore, there are no legal arguments that Sandy can use to enforce the contract.
Conclusion 5
In case the court is involved, or one of the parties files a lawsuit, the court will hold the contract invalid and terminate it.