Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Maple recently opened a new environmental consulting business in Yaletown. One morning she received a brochure that listed various pieces of art work for sale

Maple recently opened a new environmental consulting business in Yaletown. One morning she received a brochure that listed various pieces of art work for sale at Ben’s gallery. Maple thought that the painting entitled “Vancouver Maples” by Dudu Kwawele, a local artist, would be perfect in the atrium at the front entrance of her new office. The asking price for that particular painting was $52,000. The brochure also indicated that all initial enquiries were to be made in writing, signed and sent to the gallery at the specified address. Maple wrote to Ben on the 5th of March and indicated in her letter that she was willing to pay $34,000 for the painting. Ben responded by post on the 10th of March that he would be happy to part with the painting for $45,000. Maple posted a letter on the 14th of March stating that she agreed to the price of $45,000. Overnight, however, Maple decided that she preferred a more contemporary painting to go along with the décor in her funky new office space. On the morning of the 15th of March, Maple sent a fax to Ben stating “Ben, I am sorry but I have decided not to buy your painting for $45,000.” Ben received the fax and sold the painting to another buyer the next day (March 16th) for $45,000. Ben received Maple’s letter on the 29th of March. The letter took so long to reach Ben because it had been improperly addressed. A sudden surge in the price of Kwawele artwork has caused the appraised value of the “Vancouver Maples” painting to soar to over $200,000. Can Maple argue that she has a binding contract with Ben? Identify the various legal aspects that you observe in the transaction.

Step by Step Solution

3.44 Rating (147 Votes )

There are 3 Steps involved in it

Step: 1

No Maple cannot argue that she has a binding contract with Ben The main issue here is that there was ... 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

Recommended Textbook for

Introduction to Governmental and Not for Profit Accounting

Authors: Martin Ives, Terry K. Patton, Suesan R. Patton

7th edition

9780132776073, 132776014, 978-0132776011

More Books

Students also viewed these Accounting questions