On October 15, Ava entered a written and signed contract to sell Jerry an original Picasso...
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On October 15, Ava entered a written and signed contract to sell Jerry an original Picasso painting for $500,000. Jerry made a 10% down payment of $50,000 when he signed the contract. Their contract stated that Jerry would pay the balance of the purchase price, or $450,000 when Ava delivered the painting on December 20. On December 1, Jerry advises Ava that he no longer wants the painting and that he will not proceed with the sale. Their Oct. 15th sales contract provides that if Jerry does not perform the contract, Ava is entitled to keep the $50,000 down payment. A. What is this type of contractual provision called? B. What factors would a court consider in deciding whether this contractual provision is enforceable and will allow Ava to keep the $50,000. On October 15, Ava entered a written and signed contract to sell Jerry an original Picasso painting for $500,000. Jerry made a 10% down payment of $50,000 when he signed the contract. Their contract stated that Jerry would pay the balance of the purchase price, or $450,000 when Ava delivered the painting on December 20. On December 1, Jerry advises Ava that he no longer wants the painting and that he will not proceed with the sale. Their Oct. 15th sales contract provides that if Jerry does not perform the contract, Ava is entitled to keep the $50,000 down payment. A. What is this type of contractual provision called? B. What factors would a court consider in deciding whether this contractual provision is enforceable and will allow Ava to keep the $50,000.
Expert Answer:
Answer rating: 100% (QA)
A The type of contractual provision that allows Ava to keep the 50000 down payment when Jerry does not perform the contract is known as a liquidated d... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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