Mohammad Salim bought * * * a convenience store and gas station * * * . He
Question:
Mohammad Salim bought * * * a convenience store and gas station * * * . He made some improvements to the property and then offered it for sale. Talat Solaiman and Sabina Chowdhury approached Salim about buying the property in December 2006. After negotiating a purchase price of
$975,000, the parties signed a handwritten document memorializing the terms of the agreement and on December 26, signed a more formal, typewritten “Purchase and Sale Agreement” prepared by Solaiman and Chowdhury.
The typed agreement * * *
described [the property] simply as
“the property and business (known as BP Food Mart) located at 199 Upper Riverdale Road, Jonesboro, GA 30236.” The agreement set a closing date of January 5, 2007 and required Solaiman and Chowdhury to pay a $25,000 “security deposit”
to be applied toward the down payment.
But the agreement did not specify what would happen to the security deposit in the event the sale failed to close.
* * * Solaiman and Chowdhury conducted due diligence [investigation], including visiting the store and speaking to store clerks, vendors and customers. They also ordered a title search on the property and paid
$2,000 for an application to renew the store’s alcoholic beverage license in their name.
* * * The closing did not occur on January 5. And after receiving the title report in mid-January, Solaiman and Chowdhury decided that they no longer wanted to buy the property. They notifi ed Salim of their decision and asked for reimbursement of the security deposit and the alcohol license renewal fee. * * * Salim refused to repay the funds, and Solaiman and Chowdhury fi led this action [for breach of contract] in December 2007. The trial court issued judgment in favor of Solaiman and Chowdhury after finding the parties’
purchase agreement to be unenforceable because “it does not sufficiently describe the real property to be purchased.”
Questions:-
1. Why was Salim arguing that the contract should be deemed enforceable when he was being sued for breach of contract?
2. What might Salim have done to ensure that the sales contract would be enforceable?
Step by Step Answer:
Business Law Text And Cases Legal Ethical Global And Corporate Environment
ISBN: 9780538470827
12th Edition
Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Frank B. Cross