Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

James and Joanna Medley entered into a contract to sell a fitness franchise to Theresa Adams. The parties signed a written Asset Purchase Agreement on

James and Joanna Medley entered into a contract to sell a fitness franchise to Theresa Adams. The parties signed a written "Asset Purchase Agreement" on October 1, 2014. The purchase price was $125,000, payable at closing. Later, on October 7, 2014, 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 Adams from First National Bank, and $10,000 was to be paid in cash. The remaining $20,000 of the purchase price was to be paid to the Medleys in monthly installments based on sales. The closing was set for October 30. On that date, Adams tendered the $125,000 from the First National Bank loan, together with $10,000 comprised of two personal checks drawn on Adams's bank accounts. Shortly thereafter, the relationship between the Medleys and Adams soured. Adams stopped payment on one of the personal checks she presented at closing, and she stopped making the monthly payments in March 2015. The Medleys sued Adams for breach of the addendum. Adams claimed that the addendum was not enforceable because it was not supported by consideration.

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Land Law Text Cases And Materials

Authors: Ben McFarlane, Nicholas Hopkins, Sarah Nield

5th Edition

0198868529, 978-0198868521

More Books

Students also viewed these Law questions

Question

What are some ways to build relationships within the core team?

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago