Question

In: Accounting

Ron contracts to sell Leslie his boat for $100,000. Later the parties modify the contract by...

Ron contracts to sell Leslie his boat for $100,000. Later the parties modify the contract by changing the price to $110,000. All other terms remain the same. Is the second agreement enforceable? Why, or why not? If your answer is that the second agreement is not enforceable, explain what can be done to make it enforceable. In other words, you will want to consider the requirements to creating a valid modification of a contract and discuss any criticisms of the requirements.

Solutions

Expert Solution

There is no thought as a result of 'A' isn't giving 'B' any legal price for B's promise to pay 'A'$110,000. Instead, 'A' is just promising to perform a pre-existing written agreement obligation. => to avoid this drawback is for the parties to reciprocally united to cancel the primary contract before creating the new contract. => The second issue is for A to vow to present B one thing extra but slight within the second contract.

****************************************************************************************                                                            
Please upvote ,comment incase any doubt , feel free to comment ,thank you.....

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Cohen contracts to sell his house and lot to Windsor for $100,000. The terms of the...
Cohen contracts to sell his house and lot to Windsor for $100,000. The terms of the contract call for Windsor to pay 10 percent of the purchase price as a down payment. The terms further stipulate that if the buyer breaches the contract, Cohen will retain the deposit as liquidated damages. Windsor pays the deposit, but because her expected financing of the $90,000 balance falls through, she breaches the contract. Two weeks later, Cohen sells the house and lot to...
It is May 15. An oil producer has negotiated a contract to sell 100,000 barrels of...
It is May 15. An oil producer has negotiated a contract to sell 100,000 barrels of crude oil. The price in the contract is the spot price on August 15. The spot price on May 15 is $60 per barrel and the crude oil futures price for August delivery on the New York Mercantile Exchange (NYMEX) is $59 per barrel. Note that each futures contract on NYMEX is for the delivery of 1,000 barrels. A. Explain how he can hedge...
It is May 15. An oil producer has negotiated a contract to sell 100,000 barrels of...
It is May 15. An oil producer has negotiated a contract to sell 100,000 barrels of crude oil. The price in the contract is the spot price on August 15. The spot price on May 15 is $60 per barrel and the crude oil futures price for August delivery on the New York Mercantile Exchange (NYMEX) is $59 per barrel. Note that each futures contract on NYMEX is for the delivery of 1,000 barrels. Explain how he can hedge against...
10-2. Chris contracts to sell his house and lot to Kahra for $250,000. The terms of...
10-2. Chris contracts to sell his house and lot to Kahra for $250,000. The terms of the contract call for Hayaa to pay 20 percent of the purchase price as a deposit toward the purchase price, or as a down payment. The terms further stip¬ulate that should the buyer breach the contract, the deposit will be retained by Chris as liquidated damages. Kahra pays the deposit, but because her expected financing of the $190,000 balance falls through, she breaches the...
An investor enters into a short 3 months’ forward contract to sell 100,000 British pounds for...
An investor enters into a short 3 months’ forward contract to sell 100,000 British pounds for US dollars. Table 2 Spot and forward quotes of the USD/GBP exchange rate Maturity Bid Offer Spot 1.2732 1.2736 1-month forward 1.2746 1.2751 3-month forward 1.2772 1.2777 1-year forward 1.2883 1.2889 Use Table 2 to indicate how much does the investor gain or lose if the exchange rate at the end of the contract is (a) 1.25 (b) 1.30 (c) Explain what is meant...
On December 1, 20x1, Golf Co. enters into a futures contract to sell 100,000 foreign currency...
On December 1, 20x1, Golf Co. enters into a futures contract to sell 100,000 foreign currency units on January 31, 20x2 for 300 per unit. The broker requires an initial margin deposit of 40,000. The current rates are as follows: Dec. 1, 20x1 Dec. 31, 20x1 Jan. 31, 20x2        300        298         297 Provide Journal entries.
Fynn enters into a contract to sell Toby his 1999 Commodore for $3,000. During negotiations leading...
Fynn enters into a contract to sell Toby his 1999 Commodore for $3,000. During negotiations leading up to the contract Fynn assured Toby that there was no rust in the car. Examine the following three situations and: • state whether Fynn’s statement about rust is a term of the contract or a representation (just write term or representation) and • state the rule and the case that best support your decision. 1. Where three weeks pass before Toby accepts Fynn’s...
Fynn enters into a contract to sell Toby his 1999 Commodore for $3,000. During negotiations leading...
Fynn enters into a contract to sell Toby his 1999 Commodore for $3,000. During negotiations leading up to the contract Fynn assured Toby that there was no rust in the car. Examine the following three situations and: state whether Fynn’s statement about rust is a term of the contract or a representation (just write term or representation) and state the rule and the case that best support your decision. 1. Where three weeks pass before Toby accepts Fynn’s offer? 2....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT