Analyze, discuss and decide the following situation. Dean DeWiz has a classic mu
ID: 422498 • Letter: A
Question
Analyze, discuss and decide the following situation.
Dean DeWiz has a classic muscle car that he has fixed up and enjoyed drag racing. Much as he loves the car, Dean finds himself in need of cash. He parks the car on his front yard, with a sign in the windshield that says, "Cherry of a classic car, For Sale, $4,500 or best offer. As-Is."
Sharlon Cheree drives by and sees the car. She is immediately enamored and stops to look at it. Sharlon is sure the car is underpriced. When she knocks on Dean's front door, there is no response; she looks around and decides nobody is home, so she takes her business card and on the back writes, " I will pay you $5,000 cash for your classic car. I will return later when you are home." She signs her name, and dates it, including the time, and slips the card into the screen on the front door.
After Sharlon leaves, about a half hour later Dean returns. He does not see Sharlon's card because he never uses his front door, only the side or backdoors. A few minutes after he is home, his buddy Dave Dancer pulls in to look at the car. Dave really likes the car too and offers Dean the $4,500 asking price, which Dean accepts. The two men shake hands on the deal. Dean goes into the house to get the car title and Dave starts writing out a check for $4,500.
As Dean comes out of the house with the title, and before he gets the check from Dave, Sharlon pulls in. She has an envelope of $5000 cash for the car. Dean says sorry but he has just sold it to Dave. Sharlon objects and says she already offered the $5000 earlier and when Dean says "no you didn't," she marches him to the front door and shows him the card.
"There was my offer I already left you before Dave got here; you weren't home and I have the money right here," she said.
Dean turns to Dave, and says, "Sorry, there was already another offer; I just didn't know about it, so I 'm going to sell the car to Sharlon for the $5000."
Dave objects that Dean has already accepted his offer of $4,500 and cannot back out of just because some card was floating around no one knew about and Sharlon wasn't there at the time anyway.
While the three of them are arguing, Joe Don Townerbucks drives in, looks at the muscle car, and moseys over to the three arguing people and asks, "who owns that hot rod for sale?"
Dean says, "I do."
"I'll pay you $8,000 for that car," says Townerbucks, "provided the engine starts." Dean answers, "Of course it starts. I accept your offer."
Discuss: What are the issues? Does Dean have a binding agreement with Dave to sell him the car for $4,500? Does Dean have a binding agreement with Sharlon based on her written offer?
If Dean does not have a binding agreement with Sharlon, can Dean lawfully change his mind and sell the car to Sharlon now that he knows about the written offer left in his front door?
Can Dean forget both Sharlon and Dave and sell the car to Townerbucks on the latter's 3rd offer?
What is the situation if Dean accepts Townerbucks' offer and the car doesn't start?
If there is a contract with someone, identify who and at what point was the contract created.
Who gets the car? Explain your reasoning using the definitions and principles of the contract provided in any other research you do.
Explanation / Answer
Answer:The issues stated are related to the consideration of legality for contract with respect to the various elements of contract like offer, acceptance, consideration , capacity,written instruments,mutuality
Dean has a binding agreement with Dave to sell his car for $4500.Dean's consideration was $4500 which Dave agreed to pay. When both Dean and Dave agreed to the movement of consideration they have a bilateral executory contract.There was an offer, acceptance and mutuality and consideration whcih satisfies the basic tenets to quality for a contract
Dean does not have a binding agreement with Sharlon because the condition for the offer to be valid the offeree must have knowledge of the offer.Dean never saw the written offer before agreeing to dave for the consideration which tantamounted to a bilateral executory contract between Dean and Dave.Moreover there was mutuality of consideration between Dean and Dave.
Dean can however legally change his mind and sell the car to sharlon as the amount for consideration has been agreed with Dave but not transferred yet.if the amount had been transferred this would have meant breach of contract with Dave.
Yes Dean can neglect both Dave's and Sharon's offer and accept Townerbuck's offer .
In the situation the car does not start Townerbuck can revoke the order because there is no consideration to keep it open (even if there had been clauses for revoking).
The bilateral executory contract was created between Dean and dave as there was mutuality of consideration. ideally the car should go to Dave
In noen of the above scenario an enforceable agreement was present as there was no written agreement.