Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Scott and Heidi are at the Dukem Inn in Kirksville drinking Templeton Rye whiskey with Ray. Ray is interested in buying Scott and Heidi's 80

Scott and Heidi are at the Dukem Inn in Kirksville drinking Templeton Rye whiskey with Ray. Ray is interested in buying Scott and Heidi's 80 acre family farm in Illinois. While they are drinking, they negotiate the sale of this land from Scott and Heidi. At one point, Scott says "whoo boy -- I'm high as a Georgia pine". Scott prepares a writing on two cocktail napkins stapled together which reads "Sold to Ray -- 80 acre farm in Illinois - $500,000 -- marketable title to be provided -- closing costs to be split evenly -- closing date shall be August 15". Both Ray and Scott sign and then Scott says "better have Heidi sign too" and Heidi signs. Later, Scott says that the whole conversation was a big joke and that he'd never sell the 80 acre family farm. Ray insists that the contract is valid and seeks a judgment of the court ordering specific performance. Which is true as to these facts?

A.

whenever a contract is negotiated while drinking Templeton Rye whiskey, both parties have an automatic 30 day time period to declare a contract void.

B.

the Court will base its decision on whether there was a serious intention to be bound on the subjective statements of Scott as opposed to the objective facts.

C.

The court is unlikely to order specific performance because Ray can mitigate his damages by finding another farm to meet his needs.

D.

the Court will base its decision on whether there was a serious intention to be bound on the objective facts as opposed to Scott's subjective statements.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Financial and managerial accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

1st edition

978-1118016114

Students also viewed these Accounting questions