Business Laws
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Course: NameBusiness LawsYours NameProfessor’s Name [optional]Date:UniversityCase 1Clearly, the contract is made by the agreement of both the parties as Bobby agrees to build the dream house for $500,000 and I offered him the job of completing the work. Thus, the promise was made from both sides and is a bilateral promise. This case clearly depicts that I have also paid $100,000 as an advance payment to Bobby for the house and he accepted the payment and started building the house for a full payment of $500,000. Therefore, it is a bilateral contract as both the parties are in mutual agreement. Also, Bobby had been in the contract and he claims that he had completed about half of the construction work with only an initial payment of $100,000. However, he would have paid the labor and material charges as the work was about half completed. But, according to the contract he was supposed to complete the work in $500,000 and he left after the hurricane strike. So I am correct in accusing him for the breach of contract. Bobby received a payment of $100,000 and he himself decided to quit the contract. If he would have completed the construction work he may have claimed for some extra payment. I accused him for the breach of contract because he left the contract and thus, I signed the contract with Sheila for $350,000 and I already paid $100,000 to Bobby, so I got a house for $450,000, which is still less than the initial contract payment. So, Bobby can seek the extra $50,000 that I didn’t have to pay to anyone as unjust enrichment.
Even if Bobby gets $150,000 as a total payment after claiming for extra $50,000, he bears the loss from the hurricane, because he had completed about half of the construction work and he will not be get paid of about half of the money decided in the contract. So, I don’t bear any loss in this contract only Bobby bears loss due to the hurricane.Case 2On finding the Victorian Cottage haunted after moving into it, I can claim the seller for rescinding the sales. However, I don’t have any good basis for rescinding the sales. Before buying the cottage, I signed a real estate purchase contract. I also made the sale contingent after getting the cottage inspected from a licensed construction engineer who inspected the house for two days and then gave the house a clean bill of health. Thus, I already checked about the house before buying.Also, as the cottage is listed as a haunted house in the national guide and was previously been included in the walking tour of the town as a haunted house, then this fact must be very famous and I failed to check this before, which I was supposed to. So I don’t have good basis for rescinding the sale. However, I can claim that the initial owner of the house didn’t warn me that the house is haunted. I can only claim that the seller was supposed to reveal this fact before the dealing of the house.