Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. John and Jennifer Margeson entered into a contract to sell a weight-loss franchise business called Inches-a-Weigh to Theresa Artis. The parties signed a writ-

image text in transcribed
3. John and Jennifer Margeson entered into a contract to sell a weight-loss franchise business called "Inches-a-Weigh" to Theresa Artis. The parties signed a writ- ten Asset Purchase Agreement on October 1, 2004. The purchase price was $125,000, payable at closing. Later, on October 7, 2004, the parties signed a second document entitled Sales Agreement Addendum" This addendum set the price of the business at $155,000, with $135,000 payable at closing. Of that $135,000, $125,000 was to be paid from the proceeds of a loan secured by Artis from First Bank, and $10,000 was to be paid in cash. The remaining $20,000 of the purchase price was to be paid to the Margesons in monthly installments based on sales. The closing was set for October '18. On that date, Artis tendered the $125,000 from the First Bank loan, together with $10,000 from two personal checks drawn on Artis's bank account. Thereafter, the relationship between the Margesons and Artis soured. Artis stopped payment on one of the personal checks she presented at closing, and she stopped making the monthly payments in March 2005. The Margesons sued Artis for breach of the Addendum. Artis claimed that the Addendum was not enforceable because it was not supported by con-sideration. Who is correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions