Question
Please help me with the following question. Thank you. Gaiy Grice, a 35 year-old dentist, decided it was time to buy an apa1tment. After viewing
Please help me with the following question. Thank you.
Gaiy Grice, a 35 year-old dentist, decided it was time to buy an apa1tment. After viewing a few places, he
found the apartment of his dreams-a three bedroom apa1tment with a beautiful big patio garden in Melbourne,
owned by Jamala Tmner.
Jamala has owned her apartment for over 20 years and would like to fmd a buyer that will love the
property as much as she has. Jamala is moving because she recently inherited a home from her
grandfather's estate. Jamala and Gary met several times and negotiated the terms ofthe sale of
Jamala's apartment.
After those meetings, on January 5, 2017, Jamala sent Gary an email with an "agreement ofsale" as an
attachment. The email stated: "Dear Gary, attached please find a copy of an agreement ofsale. You
may want to hire an appraiser to help in your decision. Let me know if you have any questions. Best,
Jamala Turner." The agreement laid out all the topics they had previously discussed, including the
apartment's address, description, condition, sale price ($500,000), and closing costs. The document,
however, did not mention anything about the time oftitle transfer or whether certain household items
Jamala and Gary had discussed during negotiations were included as part ofthe sale. In addition, the
document contained the following provision: "This offer will expire by Monday, 9:00 a.m., January 19,
2017. I must receive your acceptance by mail. My office address is 123 West Hastings Street,
Vancouver." The same day, Gary replied by return email as follows: "Thanks for the efforts invested in
writing the agreement. I plan on hiring an appraiser and will make my final determination based on
their opinionbut, of course, I am thrilled about the offer and will likely accept it. I will be in touch by
the date mentioned."
Gary immediately went to business. He searched the internet and found Appraisal Solutions a
company specializing in affordable, fast, and accurate appraisals. He hired their services to appraise the
value ofJamala's apartment. He sent, via Pay Pal, $1,000 to Appraisal Solutions for their fees and
scheduled to meet them for their inspection on January 10, 2017 at Jamala's apartment.
On January 7, 2017 Jamala received a phone message from Jones' Flipped Properties, a for-profit club
ofseniors that buys homes and sells them for profit after renovations. The club has a poor reputation
around the area for their low-quality renovations and the underhanded ways they find to purchase
houses in prices lower than their market price. The club's President, Russell Jones, left the following
message on Jamala's answering machine: "I hear you are selling your apartment to Gary Grice. We
can't match his offer but we can offer you $450,000 and a significant discount on renovation services
for your next home, which in total savings would far exceed what Gary is giving you. Do you accept?"
Rolling her eyes, Jamala called Flipped Properties and sarcastically left this message on their
voicemail: "Yes, of course I'd just love to sell my halfmillion-dollar property for $50,000 less than my
current offer. It would be wonderful to sell it to a club that tears down perfectly beautiful homes and
then entrust the club to make cheap, cost-cutting renovations with my dear grandpa's house. All you
need to do is, you know, hire some young people so you're not living in the dark ages, and bring me a
cheque and we are good to go." And she slams down the phone.
The next morning, Russell hires two young temps to help out with the running ofthe business. Later
that afternoon, Russell shows up at Jamala's apartment with a cheque of $450,000. Jamala, looking
through the door's peephole, said: "Is that a cheque in your hand?! I never meant to enter to any deal
with you and your notorious club; I was only trying to illustrate the absurdity ofthe proposition!" She did not open the door and refused to accept Russell's cheque. Russell slips the cheque and a
memorialization ofthe deal under Jamala's door and leaves.
On January 10, 2017, after having met with Appraisal Solutions at Jamala's apartment, Gary ran into
the nosy neighbour, Cora Woods, who also happens to be an employee ofJones' Flipped Properties.
When Cora saw Gary she said to him: "What are you doing here? Haven't you heard? Jamala has
already accepted an offer from Flipped Properties." Gary immediately sent the following letter
addressed to Jamala's home address, along with the signed agreement: "I accept your offer. Now that
we have a deal, I propose that you include the custom-sized furniture you currently have in the
apartment."
The next morning, before Jamala had received Gary's letter, she called Gary and told him that the deal
is cancelled. Gary responded: "Too late, we have already formed a legally binding agreement."
Jamala, who had enough with all these problems, has decided that she wants to keep the apartment and
not sell to anyone. She comes to your law firm and asks whether she had created a contract or any other
legal obligations with Gary or Jones' Flipped Properties. Please advise Jamala, describing and
evaluating the arguments each party will likely make to impose liability and the arguments the other
side will make to avoid or reduce liability.
REQUIRED: discuss who can sue who from what (every possible case) and who could be successful in her/his claim.Also discuss any defence that could be raised and relevant contractual right and obligation (where possible)
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