Paul puts an ad on Facebook stating that he wants to sell his truck for $600. Ge
ID: 450908 • Letter: P
Question
Paul puts an ad on Facebook stating that he wants to sell his truck for $600. George goes to Mickey’s home and tells him that he is interested in buying the truck. After looking at it, George hands Paul the $600 in cash, which Paul proceeds to put in his pocket. As George is about to leave, Jack drives up and tells Paul that he’ll give him $700 for the truck. Paul hands George back his $600 and sells the truck to Jack. George sues Paul for breach of contract. Explain whether George or Paul is likely to win.
Explanation / Answer
In this case, the consideration paid by Goerge was refunded back to him by Paul. so Paul rescinded the contract. So Goerge cannot push for any claim. However if Goerge can prove that the non-performance by Paul resulted in expectation damages for Paul. For instance, if Paul had already made a contract with another party to further sell the truck for a profit, in that case, Paul can claim expectation damages to the extent of a reasonable expected profit, he would have earned, if the contract was performed.