Arrives promptly and after exchanging pleasantries tells

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Reference no: EM132208968

Mrs. Sutherland arrives promptly, and after exchanging pleasantries tells you about a problem that has arisen with her next door neighbor. It seems she owns a plot of land along Highway 81 in Anderson next to a popular restaurant called Cayman Cuisine. The owner of the restaurant, Mr. Avery Tolar, has been trying to buy the plot of land from Mrs. Sutherland for several years because he wants to expand his parking lot and build an extension onto Cayman Cuisine. Mrs. Sutherland has rejected all offers for her land so far, but about a month ago Mr. Tolar came to her home and offered her $20,000, which she rejected. However, as Mr. Tolar turned to walk away Mrs. Sutherland muttered under her breath, "I won't take less than $30,000 for it." The next day she was surprised to find a letter from Mr. Tolar's attorney accepting her offer of $30,000 and enclosing a contract for her signature. She called the attorney and explained there must have been some error, and told the attorney that she does not want to sell the land. The telephone conversation did not go well, and Mr. Tolar's attorney threatened to sue Mrs. Sutherland for breach of contract unless she completes the sale of land to Mr. Tolar for $30,000 within 28 days.

1. Is there a legally binding contract between Mrs. Sutherland and Mr. Tolar? Specifically, explain what elements are necessary for an enforceable contract, and then give your opinion as to whether those elements exist in this situation.

2. Is it possible for Mr. Tolar to accept an offer through his attorney, anyway? In other words, what is necessary for there to be an effective acceptance?

3. Mrs. Sutherland had the land valued yesterday, and it's actually worth $50,000. If you conclude that there is a contract, is it possible to refuse to comply with it on the basis that the value given for the land ($30,000) isn't the correct market price?

4. Mr. Tolar's attorney used a lot of language Mrs. Sutherland didn't understand in the telephone conversation, and although she wrote some of the words down, she doesn't understand what he meant. She has asked you to explain what Mr. Tolar meant when he said to her, "You're not allowed to rescind this contract. I'll sue you for specific performance, as well as compensatory and consequential damages suffered by my client."

Reference no: EM132208968

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