Business Law 1- Contracts 20. Tommy recently moved to Utopia, Texas, to try to m
ID: 2510494 • Letter: B
Question
Business Law 1- Contracts
20. Tommy recently moved to Utopia, Texas, to try to make a go at goat ranching. He found a small ranch on the outskirts of town that had a “For Sale” sign posted at the front gate. After meeting with the owner and taking a tour of the ranch, Tommy decided it was the place for him. He offered the owner $300,000 for the ranch and was surprised when the owner said, “You’ve got a deal!” Tommy told the owner that he’d have his attorney send over a purchase agreement for the owner to read and sign, but the owner said, “We don’t cotton to no fancy lawyerin’ in these parts. My word’s my bond. If I say you’ve got a deal, then you’ve got a deal. Let’s shake on it, and consider it done.” Not wanting to embarrass himself by insisting on a written agreement, and not wanting to insult the owner by questioning his integrity, Tommy shakes the owner’s hand and then leaves the ranch to visit his banker. Tommy returns to the ranch the next day with a $300,000 cashier’s check to purchase the ranch. When Tommy presents the check to the owner, the owner won’t accept the check and refuses to sell Tommy the ranch. If Tommy sues the owner for breaching his agreement to sell the ranch, will Tommy prevail?
a. Yes, because the owner made a promise that Tommy detrimentally relied upon.
b. Yes, because the owner was unjustly enriched by Tommy.
c. No, because the owner’s promise was not in writing.
d. No, regardless of whether the owner’s promise was in writing.
e. None of the above.
Explanation / Answer
c. No, because the owner’s promise was not in writing.
MERE ACCEPTENCE IS NOT ACCEPTENCE. THEY HAS TO ENTER INTO AGRREMENT BEFORE THEN ONLY TOMMY PREVAIL
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.