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

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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 stipÂ¬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.

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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

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