Jimmy, an art dealer and merchant, is running out of funds. Luckily, he owns a p

Question

Jimmy, an art dealer and merchant, is running out of funds. Luckily, he owns a priceless Van Gogh painting. He writes his friend Tommy. The letter says “Tommy you remember that Van Gogh painting you were interested in buying? I will offer it to you for $500,000. I will give you one month to accept this offer.” Jimmy signs the letter. Tommy receives the letter, and he is very excited. He writes back two weeks later saying that he accepts, and Tommy encloses a check for $500,000. Unfortunately, Jimmy received a better offer for the painting, and Jimmy accepts that one.

Is there a breach of contract?

If so, what remedies may Tommy get?

Explanation / Answer

Yes there was a breach of contract because Jimmy offered 1 month to Tommy to make up his decistion about purchasing the paiting, Tommy replied 2 weeks after he received the letter which is inside the window Jimmy provide, Tommy in adherence with the contract.

Another thing we need to observe is that there were no open terms to the contract , in fact a letter can not be described as a contract .

As long as Jimmy gives back the $500,000 to Tommy then Tommy unfortunately can not persue legal actions, however if Jimmy does not give the money back then yes of course he could go to jail for fraud.

In the future Tommy should only send this high amount of money when there is a legal contract

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