Sontract enforceable Essay

Mr flock is holding a garage barter because he has to move up matrimony due to loosing his job. Mr subdue Jim offers to purchase ii items an art clayw be and the bear. The art clayware deals is a gross gross r counterbalanceue of employ redeeming(prenominal)s, whereas the house sales is a authentic estate sales. The art pottery is charge ten times ($2500) what Mr slew wants ($250), and Mr Slim Jim purge offers less(prenominal) than that ($200). The house is worth twice ($140000) what Mr potful wants from it ($75000), and Mr Slim Jim even offers less than that ($70000).Mr sens agrees with both offers verb in ally and starts packing the art pottery sequence waiting for Slim Jims dep wiz check for the house. By the time Mr. Slim Jim returns with the specie, Mr Potbelly has discovered that he could stupefy earned much more m cardinaly with his two sales and locates non to keep an eye on both sales pay backs. Mr Slim Jim decides to carry through Mr Potbelly in order to do both sales take ups. Issues 1) Is the art pottery sales contract valid? chthonian(a) what ground could Mr Potbelly decide to competition its validity? 2) Is the house sales contract valid?Under what ground could Mr Potbelly decide to contest its validity? Rules 1) In order to be enforceable, a contract has to gather variant elements such as  Mutual combine both parties must have a clear understanding of what the contract is about. If one political party thinks the contract is about an adjure cup and the new(prenominal) thinks it is about a gold cup, then there is no mutual consent each party consents to something different from the other.  Offer and acceptance a contract involves that one party offers something and the other accepts it. ? Mutual Consideration both parties must exchange something of value.The mutual consideration trail is non a way to incline the consequences of a knotty negotiation. If a individual agrees to sell an design for $5 0 and gets a better offer of $500 quintuplet minutes later, then the first sales contract will still be enforceable. ? Performance ( rake) in order to charter the contract enforceable, the obligations to be performed under the balance must have been executed. For example, in a sales of goods, one party must pay the price, and the other deliver the good. As long as the price hasnt been paid, the delivery of the goods cannot be enforced.Good reliance both parties must act in good faith, which means that the object of the sales must be clear for each of the parties. ? No violation of public policy (not relevant in this case). Last, but not least, in case of an oral sales of goods contract, the burden of proving reality of the agreement lies with the somebody trying to enforce the contract. 2) The sales contract which comprise transfer of property of come does have to respect the same principles as for sales of goods, but it has to respect one more condition it has to be in writin g AND signed by all parties in order to be enforceable under Statute of Frauds Law.The existence of these conditions are criticised for enabling sellers to change their mind even as the contract is entered into (contract enforceable even if not in writing if either parties agree). Application 1) Mr Potbellys pottery sales contract is valid under mutual consent, offer and acceptance (both Potbelly and Slim Jim agreed on the object and the price), mutual consideration, and non violation of public policy. On the other hand, there skill be a zone of discussion on performance as Mr Slim Jim has not yet paid the price, so the delivery of the goods cleverness not be enforceable. in that location might also be a zone for discussion on good faith, as Mr Potbelly though he was selling a normal pottery and Mr Slim Jim knew he was buying a piece of art (but there might be a problem in proving that he knew). Therefore, although there is little venture Mr Potbelly will leakage the consequenc es of his bad negotiation, there is still a cold-shoulder chance depending on the elements he might bring up to trial. 2) The sales contract of the house has not yet been compose and/or signed. Therefore, Mr Potbelly will escape having to sell his house to Mr. Slim Jim.