Shari and Todd are negotiating the sale of a piece of property, Shari selling th

Question

Shari and Todd are negotiating the sale of a piece of property, Shari selling the property to Todd. Todd offers to purchase the property from Sam for $65,000 in a conversation on 1 October. Shari leaves abruptly for another appointment after another hour of conversation, without having responded to Todd. As Shari is leaving, Todd says annoyed, “I really need to know as soon as possible.” On 2 October, Shari calls Barney and leaves a message, saying, “I accept your offer, but I’d like you to pay $70,000. I’d really appreciate it if you not fill in the pond in the backyard, where I used to sit with my mother. Look forward to hearing from you as soon as possible.”

Todd receives the message on the evening of 2 October. On the morning of 4 October, another buyer offers to purchase the property from Shair for $75,000, which Shari immediately accepts over the telephone. Shari immediately sends a letter of acceptance that is countersigned by the buyer and returned to Shari that same day. On 4 October, Todd mails a letter to Shari, by Express Mail, indicating that the price of $30,000 is fine and formally agrees to purchase the property, but stating that he will probably have to fill in the pond for the new construction.

Is there a valid contract between Shari and Todd for the sale of the property? Why or why not? What are arguments supporting each party’s position?

If, after hearing your arguments, the court were to determine that there is, in fact, a valid contract, would the contract be enforceable? Why or why not?

If the court determines that the contract between Shari and Todd is valid and enforceable, what would be the appropriate remedy(ies)?

Explanation / Answer

There is no valid contract between Todd and Shari for the sale of the property. The reason why the contract is not valid is because the offer and the acceptance are not present between Todd and Shari. For a contract to be valid it must have and offer, an acceptance, legal relationship intention and a consideration. In this instance there has not been an acceptance and the contract has not moved forward.

Shari offered to sell the property for $70000 on October 2. However Todd hadn’t acted on the offer till October 4. Hence the argument from Shari is that he got into a contract with the new buyer before Todd answered.

After hearing the arguments, if the court decides there would be a valid contract, the contract still will not be enforceable as there has not been any legal relationship between them. There has not been any intention to get the contract enforced by law.

If the court decides that the contract between Todd and Shari is enforceable, the remedy is to hand over the property to Todd and enforce Todd to pay Shari $70000

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