Is There a Valid Contract between Buyer and Seller

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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... ... middle of paper ... ...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.

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