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Unit 3 Contracts
Question 1: Statute of Frauds 100 pts
IRAC
Frances has lived in an apartment for ten years when she decides to buy a house. Her one-year lease will end on May 1. On April 15, she orally contracts to buy Frank’s house for $100,000, with the closing (transfer of the deed) to take place on June1. Frank’s lawyer, who is out of town on vacation, is to draft a written contract of sale on his return to his office on May 15. Because Frances’s lease is terminating, Frank agrees to let her take possession of the house on May 1 if Frances gives him a down payment on the house of $5,000. Frances agrees and gives Frank the $5,000. She moves into the house on May 2, and the following weekend plants trees in the back yard. On May 10, Frank receives a written offer from Green to buy Frank’s house for $120,000. Frank accepts Green’s offer, asks Frances to move out of the house, and tries to return the $5,000 to Frances. Frances claims that she has an enforceable contract to buy the house. Frank claims that any such contract must be in writing to be enforceable under the Statute of Frauds.
Analyze using IRAC
Question 2
Breach 100 pts
Use IRAC
Stacey contracts to buy six cases of vintage Stomp Valley wine from Twisted Winery for $1,200. The contract states that delivery is to be made at Stacey’s residence “on or before May 1, to be used for daughter’s wedding reception on May 2.” On May 1, Twisted’s delivery van is involved in an accident, and no wine is delivered that day. A message was left for Stacy telling her of the accident. On the morning of May 2, Stacey buys the wine from Happy Hill Winery for $1,800, and her staff prepares for the reception. That afternoon, just before the reception, Twisted tenders delivery of the wine at Stacey’s residence. She refuses tender. Twisted sues Stacey for breach of contract, Stacy files a counter claim.
Use IRAC to analyze Stacey’s position.
Unit 3 Contracts Answer
Frances had been living in an apartment owned by Frank for 10 years. Her one-year lease would end on May 1. On April 15, she orally contracts with Frank to buy the house for $100,000, with the transfer of deed to take place on June 1. Frank’s lawyer, however, was out of town and can only provide a draft of a written contract on May 15. Since France’s lease will be terminated on May 1, Frank agrees to let her take possession of the house on May 1 if Frances will give him $5,000 as a down payment for the purchase of the house.