Question Answer

1. How does a unilateral contract differ from a bilateral con- tract? Give an example of each.

2.Use the Case study Analysis Template to consider and record the details of both sides of the legal case.

H. v. K. (July 15, 1996, Doc. No. C954322, Vancouver, Lowry J. (B.C.))

H operated a business that consisted of a small eight-seat cafe in leased premises in an old building. In 1992, she approached the city for a licence to increase the cafe to 25 seats. The city gave her a temporary licence conditional on her remaining the occupant of the premises. H wrote the city confirming that she would abide by the requirement and would neither advertise nor sell the business as a 25-seat operation. Naturally, in a selfless gesture to give students a case to consider, she did otherwise. In 1994, she listed the business for sale as a 25-seat restaurant. K and S offered to buy the business assuming that it was licensed for 25 seats. The offer was accepted along with a deposit. The balance of the price was to be paid on closing. K and S began operating the business pending the closing. When K applied for a transfer of the licence from H to K and S, the city informed K that no licence would be issued for a 25-seat restaurant. H, K, and S then agreed to add the following addendum to the agreement:

Completion date is extended to 96 hours after the vendor has received a busi- ness licence approval for a 25-seat restaurant. In the event that approval for 25 seats is not received prior to June 30, 1995, then, at the purchaser's option, all deposit monies will be returned and the contract shall be null and void.

H contacted the city's Planning Department, which inspected the property. The Department made numerous recommendations for upgrades to the premises, which were financially impractical given the age of the building. As a result, H made no application for a 25-seat licence. She did receive a written confir- mation that she could continue to use the space as a restaurant as long as there were no further alterations and she remained the operator. K and S closed the business and left the premises. H resumed possession and reopened the restaurant. Several months after June 30, 1995, she obtained the licence approval that K and S had requested. H then took the position that she had met the requirements under the addendum and claimed that K and S had orally agreed to extend the deadline.

H sued for damages, and K and S countersued for their deposit. The issue was whether H had received the approval for the licence change in accordance with the terms of the contract and its addendum. The court held that H had not received the licence for a 25-seat restaurant by June 30, 1995, and that the parol evidence rule precluded the inclusion of an oral term extending the deadline.

H was ordered to return the deposit and pay K and S's legal costs.

Case Study Analysis Template

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Defendant: _____________________________

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Case / Issue (sue for...): _____________________________

Judgment / Decision: _____________________________

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Remedies:

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