John owns a UWM Brew Pub. Business has been slow because a competitor opened up
ID: 461354 • Letter: J
Question
John owns a UWM Brew Pub. Business has been slow because a competitor opened up down the street and they have better food and drink specials. Instead of trying to compete, John wants out of the bar business. He is at a party with a number of friends and says “I hate the bar business, I might sell if I could get anything over $250,000 for my bar or something decent.” Ryan hears it and says “I accept.” The next morning Ryan calls John to ask when he can drop off his check for $250,000 and pick up the keys to the UWM Brew Pub. John tells Ryan he’s not selling so Ryan sues. Who wins and why? What defenses does John have and what arguments would Ryan need to make to prevail?
Explanation / Answer
There is no valid contract that exists in between John and Ryan. Verbal contract that rely on mere oral aggrements are although legally binding (Provided they have been made in good faith and are resonable and equitable). The difficulty comes in its enforceablitiy in the law of court. In order for an oral contract to be valid there has to be a
since neither of the above above applies in the above scenario, the contract is nullified by law. Although ryan can come up with the arguement that the statement to sell the bar was ade in the presence of several individuals but this is something to which john never gave his consent. not even verbally. as a result of which John is bound to win.
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