Cleo, a local business owner, has been very stressed out so she decides to advertise and

sell her bookstore business and travel.

Alan, a regular customer of the bookstore, was familiar with the bookstore and always

had dreams of owning and operating the business. Alan sends Cleo a detailed offer to

buy the bookstore for $$200,000,$ with $$50,000$ being paid as a down payment in cash, and

the other $$150,000$ to be paid within $12$ months of the closing date of the transaction.

Cleo sends Alan an email response: "The total price seems fine, except I need more cash

upfront to travel $$ at least $$100,000.$ Tell me how much you can pay upfront." Alan

responds to the email: "I don't have that much money right now, there is no way I can pay

that much cash".

After researching travel costs, Cleo decides that $$50,000$ is probably enough as a down

payment and sends Alan an email: "After doing some research on travel costs, I have

decided to accept your offer". When Alan read the email, he began to rethink buying the

business and got cold feet on the transaction. He really just enjoyed going there to talk to

the regulars and loiter $$ once a potential reality, Alan starts to believe owning a business

sounds like too much work. Accordingly, Alan tells Cleo that she refused his offer so there

was no deal to accept.

Question:

Assume that Cleo and Alan complete the transaction described above and Alan

purchased the bookstore for a total of $$200,000.$

After returning from her travels, Cleo's mother, Elizabeth, asks her about the rationale for

selling the bookstore and who she sold it to$.$ Once she learns more, Elizabeth tells Cleo

that she thinks it very odd that she sold the bookstore to Alan, who in addition to being a

persistent loiterer at the bookstore, is Cleo's trusted therapist. With a new perspective,

Cleo agrees with Elizabeth and sues Alan to recover her bookstore business.

Required:

On what grounds could Cleo seek the return of the bookstore business? Explain how the

onus of proof will operate in the resulting legal action and indicate the probable outcome.

Be certain to explain the applicable legal principles as part of your answer.