Question
Bob owns a house in St. John's and a vacant ocean-front lot just outside the city, even though he lives most of the year in
Bob owns a house in St. John's and a vacant ocean-front lot just outside the city, even though he lives most of the year in Florida. Denise has always wanted to buy the vacant lot and has had conversations with Bob about doing so. Bob has decided to sell the land and asks his brother, Ted, to present Denise with an offer to sell the land to her. Ted hand-delivers the offer to her on February 20. The written offer states that Bob will sell the land to Denise for $300,000 but the offer will "only be open until March 1". It also states that if Denise wishes to accept the offer, she must email her acceptance to Bob. Denise wants to buy the land and tries to make an appointment with her banker to arrange financing, but her banker is out of town. Worried she will not be able to meet the deadline, she hand-writes a note to Bob and slips it under the front door of his house on February 24. The note says, "I accept your offer." On February 25, Ted calls Denise and gives her the bad news that Bob agreed that morning to sell the land to someone else. Upset, she immediately sends an email to Bob indicating she accepts his offer to sell the land to her.
(1) Is there is a binding contract between Bob and Denise for the purchase and sale of the land? Why or why not? (2) If Bob's offer did not mention the price for the sale of the land, would it constitute a valid legal offer? Why or why not?
(3) Assume there was a binding contract made between Denise and Bob. A week later, she and Bob talk on the telephone, and Denise worries that Bob doesn't want to go through with the deal. She offers to add an extra $20,000 on the price and Bob agrees. On the day of closing, Denise refuses to pay the extra $20,000. Does Bob have grounds to sue Denise for breach of contract? Why or why not?
(4) Would your answer to (3) above be any different if Bob and Denise lived in British Columbia and the land was in Vancouver? Why or why not?
(5) Bob decides to sue Denise in St. John's but doesn't want to sue her in Supreme Court because of the cost involved. Which other court, if any, could he sue her in?
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