1- Jordan entered into a written agreement to sell his boat to Zoe for $567,000
ID: 363034 • Letter: 1
Question
1- Jordan entered into a written agreement to sell his boat to Zoe for $567,000 with delivery to take place on May 15, 2014. Zoe was to pay $100,000 at that time and the balance on or before August 1, 2014. Jordan delivered the boat and Zoe paid the first $100,000 installment.
On July 25, she approached Jordan and said she was having financial troubles. She did not have the funds to pay. She told him that she would instead offer to pay the balance by transferring three valuable pieces of jewelry she owned. Jordan had the pieces examined by a professional jewelry appraiser who placed the value at "approximately $500,000." Jordan agreed in writing to "accept this has an accord. I will accept the three pieces as payment in full, so long has your payment is completed by August 15, 2014."
On August 8 during a Lake Superior storm, the boat sank and could not be recovered. Zoe never delivered the jewelry and on Nov.1, Jordan sued to recover the $467,000 balance due on his boat. During the previous few months, the value of gold and precious gems had fallen so low that the jewelry was now only worth $200,000. Zoe offered to give him the jewelry but Jordan insists on payment in cash of the $467,000 balance.
Please discuss amount and type of payment, if any, that Jordan may recover.
Explanation / Answer
As per the case It is in writing agreement that Zoe will pay full amount of $567,000 to Jordan. Due to financial trouble to Zoe she has offered her jewellery which had current value of $500000 approx but sudden market of gold and gems became down and market value of jewellery set fallen to just $200000.
If Jordan take this jewellery on that day will not recover his whole amount. So additional $267000 need to be recover from Zoe. So Zoe has to give $100000 (already paid) + $200000 (Approx Jewellery market value) + $ 267000 (Additional amount) = $567000
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