Advising "parties" of their rights - Law Class Question (Analysis/Response) PLEASE help!?
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Advising "parties" of their rights - Law Class Question (Analysis/Response) PLEASE help!?
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Hello, so we have to prepare a response (I have about 75% of the length, I just need some more) to the following case. I am trying my best to address all aspects of the case problem.
You don't need to elaborate, but if you can think of any aspects I could work with, that would be great. You could even throw in your own thoughts too, if you wanted. Most of the time I just go off of other people's ideas. I only get a completion mark (the old-school check mark on top) for this, so any help you can give me would be very appreciated!
Case:
Ravi owned a rental property near a university. For several years, Ravi had rented the house to Alice while she completed her university studies. Alice was very fond of the house and had painted it and made a number of upgrades during her tenancy. She and Ravi had talked casually from time to time about the possibility of her purchasing the house from Ravi. In January (about four months before her graduation), Ravi told Alice that he would be willing to sell her the house when she graduated for its “market value.”
Alice graduated in April but did not find employment until August of that year. On August 15, while on holiday celebrating her new job, she posted a letter to Ravi stating that she was ‘accepting his offer’ to sell the house for ‘market value’.
Unaware of Alice’s letter, on August 17 Ravi entered into a contract to sell the property to a property developer. He received Alice’s letter on August 18.
Advise the parties of their rights and determine the probable outcome should Alice bring legal action against Ravi.
I should probably mention that this case came from a Canada textbook, so it is looking at North American Laws.
THANK YOU!!! I truly appreciate it.
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Let_Justice_Prevail
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On these types of questions make sure you answer it from each person's point of view, discussing the possible issues and arguments each party can raise. Don't just solve the problem--that's a mistake I made in law school on an exam one time.
This involves property rights and contract law. Alice, as a tenant and potential buyer, could argue that she relied on Ravi's promise to sell the property so that is why she made improvements out of her pocket. Ravi can of course argue that he had no written contract with Alice so the statute of frauds would bar Alice's enforcement of the verbal agreement.
These are the basic issues described in the fact pattern but I am sure you can expound upon them. Good luck. |
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Libertyforall
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The issue here is whether Ravi's statement was an offer or an option. Basically, an offer creates in the offeree an immediate power of acceptance. Alice didn't pay anything to keep the option open. She would have to do so if Ravi was a merchant, or if he sold property in the ordinary course of his business. That doesn't appear to be the case, so the option could have remained open. Next question is whether four months is a reasonable period for an offer like this to remain open. Probably.
The other issue that you need to take a look at is, if it was in fact a genuine offer, when was Alice's acceptance effective. Generally, the acceptance is effect when it is received by the offeror. However, the mailbox rule permits the acceptance to be effective as of the date the letter of acceptance is actually mailed (unless the offer requires actual receipt of the acceptance)
Assuming the offer is valid, and the acceptance was dated 8/15, it appears Ravi breached the contract unless he can regain the property in time to convey it to Alice.
Then there's damages. But I have to let you do at least some of your Contracts homework by yourself. |
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