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Paper Assignments Name Institution Professor Course Date Capacity to contract and Specific Performance The Chief Executive Officer of FUN does not have the capacity to enter into contracts on the company’s behalf. The board of the company must make decisions on the company’s behalf. The company is a separate legal entity which is considered by law to be different from its owners in terms of legal liability. Merely indicating the price at which one intents to sell property is not an offer. This can be seen in Harvey v Facey. This case was about negotiations for purchasing a Jamaican real estate property that was owned by Adelaide Facey who was Facey’s wife. Anor and Harvey asked Facey if he would sell the property plus the could withdraw from the negotiations any time. Therefore such an agreement is not certain and does not have any legal content. Outcome Because of absence of evidence that the two parties wanted to be bound by the contract there was no enforceable contract. SAD CEO cannot sue because he is not going to have sufficient grounds to sue for breach of a contract that was not there. This means that FUN is under no obligation to sell the building to SAD for $9 million. References Walford v Miles [1992] 2 A.C. 128 (23 January 1992) Biotechnology Australia Pty Ltd v Pace (1988) 15 NSWLR 130 Court of Appeal Supreme Ct NSW Harvey v Facey [1893] AC 552 Privy Council Gibson v Manchester City Council [1979] 1 WLR 294 [...]

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You are an assistant to the attorney for FUN Company. To complete this assignment you must write a two-to-three page report discussing the legal issues and likely outcome for the case below: SAD Co. vs. FUN Company: Several weeks ago, SAD Co. CEO met with FUN’s CEO for lunch to discuss potential business ventures between both companies. After a few shots of whiskey, SAD’s CEO tells FUN’s CEO that SAD is interested in purchasing a commercial building that FUN owns in a central area in West Palm Beach. SAD is interested in this building because of the specific location in which it is located. SAD believes that owning a building in that specific location will increase their business significantly. SAD’s CEO offers FUN’s CEO to purchase that specific building for $5 million. FUN’s CEO responds that FUN estimates that the building is worth $9 million and that they are willing to sell the building for that price give that they have no use for it. SAD’s CEO takes out a $1.00 bill gives it to FUN’s CEO and says “this is my payment so that you give me ten days to talk to my board and see if we are willing to pay $9 million.” FUN’s CEO laughs and puts the $1.00 bill in his pocket. Both CEO’s shake hands and say goodbye and leave. The next day SAD’s CEO calls an emergency meeting to discuss the $9 million purchase price and the board agrees to the purchase of the building for $9 million. Immediately after the meeting, SAD’s CEO calls FUN’s CEO on the phone and tells him that SAD agrees to purchase the building for $9 million. FUN’s CEO tells SAD’s CEO that FUN has decided not to sell the building because after their meeting yesterday they realized how much potential the building actually had. SAD is now demanding that FUN honor its word and sell them the building for$9 million.

Subject Area: Law

Document Type: Reports

This project has already been completed by one of the Studybay experts. The client rated this project:

Project's rating is 5/5

Price $35

Words 550

Pages 2

Completed in 6 days

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