Question
Carl wants to buy a new car for his daughter, Sue, as a college graduation present. He enters into a contract with World Auto Sales,
Carl wants to buy a new car for his daughter, Sue, as a college graduation present. He enters into a contract with World Auto Sales, which is supposed to deliver the car to Sue's home. Carl gives the dealer $15,000 as a down payment on the car, and signs financing documents on the car. Sue is not mentioned in the contract between her father and World Auto Sales.
On Sue's birthday, the dealer fails to deliver the car, and when Carl checks back, he discovers they never ordered the car in the first place. Sue files a lawsuit against World Auto Sales. What is the likely outcome of the lawsuit? Why?
Is there a different outcome in the lawsuit if Sue, prior to her birthday (and the date of expected delivery) hears that her dad is giving her a sparkly new car and she sells her old car to a friend? Why?
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