Isaac operated a second hand store and purchased an antique chair at a garage sale for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Isaac operated a second hand store and purchased an antique chair at a garage sale for $150.00. One week later Secord saw the chair in his store with a price tag of $1,000.00. She offered $500.00 but requested that Isaac keep the chair for 2 weeks since she was repainting her living room. Isaac told Secord that the chair was worth much more than $1,000.00 but he would sell it to her since she seemed to be a nice person. He proceeded to prepare an invoice which they both signed. Secord paid a deposit of $100.00 and agreed to pay the balance when she picked up the chair. Secord didn't pay particular attention to the invoice since she didn't believe that the terms of the deal were particularly complicated. Isaac gave her a copy of the invoice and put a "sold" sign on the chair. The following week, Lincoln, an antique dealer visited Isaac's store, carefully examined the chair and offered $10,000.00 for it. The chair, Lincoln explained, was a rare specimen dating to 1812. Isaac accepted Lincoln's offer. Isaac contacted Secord and told her that his mother had fallen in love with the chair and he wished to terminate their agreement. He offered to pay Secord $200.00 for her trouble. Secord told him she would like a day to think about it. She was suspicious that Isaac would offer her $200.00 when the chair was only worth $500.00. Secord reviewed her invoice and discovered that the price in the invoice was $1,000.00. After receiving several increasingly demanding calls from Isaac and feeling intensely pressured and not sure what to do, Secord confirmed that she would accept his offer of $200.00 to release him from their sale agreement. The next week Secord saw an article in the local newspaper featuring Lincoln and Isaac and the discovery of the rare 1812 chair worth $10,000.00. She immediately recognized the chair. Secord believes that she still has a binding agreement to buy the chair for $500.00, but is willing to pay the $1,000.00 amount in the invoice if necessary. She does not feel that the agreement to terminate her purchase agreement with Isaac is binding since he lied to her about his mother and she agreed only because she felt pressured and threatened by his belligerent phone calls. She commences an action against Isaac and requests: a declaration that the agreement to release Isaac is null and void; rectification of the invoice and specific performance of the agreement for the purchase and sale of the chair for $500.00, or alternatively specific performance of the purchase agreement for $1,000.00; (i) (ii) (iii) (iv) (iv) an injunction to prohibit the sale of the chair to Lincoln; damages for breach of contract in the amount of $9,500.00; punitive damages of $20,000.00. Required: Examine Secord's case, Isaac's position in defending the lawsuit, the applicable principles and likely result of the litigation. (ii) While the lawsuit is pending, a fire breaks out in Isaac's store and the chair is destroyed. How does this affect the rights and obligations of the parties? Does the principle of frustration apply? (iii) Assume there is no fire. However, while the lawsuit is pending, Isaac has the chair appraised for insurance purposes. The appraiser confirms that the chair is not an authentic antique, but is a simple replica which is worth $100.00. Both Secord and Lincoln find out about the appraisal and both now refuse to purchase the chair. Isaac comes to you and asks that you advise him if he has any legal basis to commence an action against either Secord or Lincoln and, if so, what he will be entitled to claim. Isaac operated a second hand store and purchased an antique chair at a garage sale for $150.00. One week later Secord saw the chair in his store with a price tag of $1,000.00. She offered $500.00 but requested that Isaac keep the chair for 2 weeks since she was repainting her living room. Isaac told Secord that the chair was worth much more than $1,000.00 but he would sell it to her since she seemed to be a nice person. He proceeded to prepare an invoice which they both signed. Secord paid a deposit of $100.00 and agreed to pay the balance when she picked up the chair. Secord didn't pay particular attention to the invoice since she didn't believe that the terms of the deal were particularly complicated. Isaac gave her a copy of the invoice and put a "sold" sign on the chair. The following week, Lincoln, an antique dealer visited Isaac's store, carefully examined the chair and offered $10,000.00 for it. The chair, Lincoln explained, was a rare specimen dating to 1812. Isaac accepted Lincoln's offer. Isaac contacted Secord and told her that his mother had fallen in love with the chair and he wished to terminate their agreement. He offered to pay Secord $200.00 for her trouble. Secord told him she would like a day to think about it. She was suspicious that Isaac would offer her $200.00 when the chair was only worth $500.00. Secord reviewed her invoice and discovered that the price in the invoice was $1,000.00. After receiving several increasingly demanding calls from Isaac and feeling intensely pressured and not sure what to do, Secord confirmed that she would accept his offer of $200.00 to release him from their sale agreement. The next week Secord saw an article in the local newspaper featuring Lincoln and Isaac and the discovery of the rare 1812 chair worth $10,000.00. She immediately recognized the chair. Secord believes that she still has a binding agreement to buy the chair for $500.00, but is willing to pay the $1,000.00 amount in the invoice if necessary. She does not feel that the agreement to terminate her purchase agreement with Isaac is binding since he lied to her about his mother and she agreed only because she felt pressured and threatened by his belligerent phone calls. She commences an action against Isaac and requests: a declaration that the agreement to release Isaac is null and void; rectification of the invoice and specific performance of the agreement for the purchase and sale of the chair for $500.00, or alternatively specific performance of the purchase agreement for $1,000.00; (i) (ii) (iii) (iv) (iv) an injunction to prohibit the sale of the chair to Lincoln; damages for breach of contract in the amount of $9,500.00; punitive damages of $20,000.00. Required: Examine Secord's case, Isaac's position in defending the lawsuit, the applicable principles and likely result of the litigation. (ii) While the lawsuit is pending, a fire breaks out in Isaac's store and the chair is destroyed. How does this affect the rights and obligations of the parties? Does the principle of frustration apply? (iii) Assume there is no fire. However, while the lawsuit is pending, Isaac has the chair appraised for insurance purposes. The appraiser confirms that the chair is not an authentic antique, but is a simple replica which is worth $100.00. Both Secord and Lincoln find out about the appraisal and both now refuse to purchase the chair. Isaac comes to you and asks that you advise him if he has any legal basis to commence an action against either Secord or Lincoln and, if so, what he will be entitled to claim.
Expert Answer:
Answer rating: 100% (QA)
I Examining Secords Case 1 Null and Void Agreement Secord argues that the agreement to release Isaac is null and void due to Isaacs alleged misreprese... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
1. Braun's Brakes manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following per unit data apply: Which model has the...
-
McMaster operated a second hand store and purchased an antique chair at a garage sale for $125.00. One week later Lily saw the chair in his store with a price tag of $500.00. She offered $300.00 but...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Compute the indicated quantities for the given homomorphism. Ker () for : S 3 Z 2 in Example 13.3 Data from Example 13.3 Let S n be the symmetric group on n letters, and let : S n Z 2 be defined by...
-
A company has fifteen projects going on at once. Three projects are over $5 million, seven projects are between $1 million and $3 million, and five projects are between $500,000 and $700,000. Each...
-
During 2023, Laiken Limited sold its only Class 3 asset. At the time of sale, the balance of the undepreciated capital cost for this class was $37,450. The asset originally cost $129,500....
-
Defendants Jack and Claire Lein owned and lived on Willow Creek Farm from 1980 through 2004. The farm manager, Stewart, and his girlfriend, plaintiff Tambra Curtis, also lived on the farm during this...
-
Sprinkle Inc. has outstanding 10,000 shares of $10 par value common stock. On July 1, 2010, Sprinkle reacquired 100 shares at $87 per share. On September 1, Sprinkle reissued 60 shares at $90 per...
-
Blossom Corp. obtained a tradename in January 2024, incurring legal costs of $72,720. The company amortizes the tradename over 8 years using the straight-line method. Blossom successfully defended...
-
During 2020, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets Date Acquired Purchase Price Brokers Commission Paid at Time of Purchase 300 shares of IBM...
-
What is the maximum bending stress in tension for a beam with a maximum bending moment of 150 kip-ft if the moment of inertia is 510 in and the distance from the neutral axis to the maximum tension...
-
A $40,000, four-month, 6.5% note payable was issued on October 1, 2015. Which of the following would be included in the journal entry required on the note's maturity date by the borrower?
-
Describe how the current ratio is used to analyze financial results?What are the components of the ratio and how is the ratio calculated?What does the ratio indicate regarding a company's financial...
-
Good day, tutor! Kindly help me provide information regarding the needed information below, thank you! Note: All inside the country Philippines Needed information: 1. Product description of Tesla...
-
An undersea research vehicle has a spherical pressure hull 1.2-mradius. The pressure hull is steel having a yield point of 750M Pa. If the allowable depth of submergence is not to exceed 4.3 km,...
-
Consider a competitive market for pork with the quantity demanded (per year) at various prices are given as follows: Price (dollars/kg) Demand (million kg) 60 22 80 20 100 18 120 16 Calculate the...
-
. Managerial accounting is applicable to a. service entities. b. manufacturing entities. c. not-for-profit entities. d all of these 2. Both direct materials and indirect materials are a. raw...
-
Use the method of Example 4.29 to compute the indicated power of the matrix. 1 0 1
-
Discuss the advantages and disadvantages of grievance mediation.
-
Choose a union that you are personally familiar with or one that you can research. From the information available to you, can you see evidence that supports a theory or theories presented in this...
-
Mutual gains bargaining is based on four principles. Identify these principles and explain what difference they make in the way a negotiation process is conducted.
-
Select the circumstance in which the impact on government bond yields of a new source of revenue (such as a natural resource discovery) would be largest. Explain your choice. a. Before the discovery,...
-
Discuss how yields anticipate future economic activity.
-
Suppose the yields on tax-exempt local government bonds in Problem 9 initially were below the Treasury yields of the same maturity. If the tax-exempt status were then removed from the local...
Study smarter with the SolutionInn App