Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 10-2. chris contracts to sell his house and lot to

10-2. Chris contracts to sell his house and lot to Kahra for $250,000. The terms of...

70.2K

Verified Solution

Question

Finance

10-2. Chris contracts to sell his house and lot to Kahra for$250,000. The terms of the contract call for Hayaa to pay 20percent of the purchase price as a deposit toward the purchaseprice, or as a down payment. The terms further stip¬ulate thatshould the buyer breach the contract, the deposit will be retainedby Chris as liquidated damages. Kahra pays the deposit, but becauseher expected financing of the $190,000 balance falls through, shebreaches the contract. After adjusting the listing price downwardseveral times due to market volatility, 10 months later Chris sellsthe house and lot to Connor for $270,000. Kahra demands her $50,000back, but Chris refuses, claiming that Kahra's breach and thecontract terms entitle him to keep the deposit. Discuss who iscorrect using the IRAC method of case analysis.

Answer & Explanation Solved by verified expert
4.4 Ratings (845 Votes)
Solution Issue Whether Kahra is entitled to demand back the down payment of 50000purchase price25000020 which was made by her to Chris for acquisition of house and lot from Chris Rule A contract can be defined as an acceptance made by one party to the contract for the offer made by another party to the contract which is legally enforceable In other words an agreement which is legally enforceable is considered as a Contract A contract to be valid should have following features Consensus ad idem This means that both partiesContractor Contractee to the contract should understand the same thing in the same way Certainty This means that a contract should be certain otherwise the contract will be    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Show your work please A random sample of 20 aluminum cola cans is selected and the axial...

Statistics
Q

- A 0.171 M weak acid solution has a pH of 4.34. Find Ka for...

Chemistry
Q

In an AC to DC rectifier circuit, the output DC signal of the rectified wave was...

Physics
Q

A. In the Republic, why does Plato think that only philosophers are equipped to rule? B....

Psychology
Q

A parallel plate capacitor is made of two square parallel plates of area A and...

Physics
Q

Insurance O Generic items Housing Which of the following BEST completes the diagram O Services...

Basic Math
Q

Evaluate the integral 34e 80 7e 10 da Answer C Hint let u e so...

Calculus
Q

Which expression is equivalent to O O 4 200 2 4 20 2 2 5...

Calculus
Q

8 Select a function y f x x and dx and find dy to approximate...

Calculus
Q

Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends Inc.,...

Accounting
Q

QUESTION 4 Consider the following cash flows on two projects. If the company uses the...

Accounting
Q

Ensure that the Facilities worksheet is active. Enter a reference to the beginning loan balance...

Accounting