Question

In: Operations Management

3/       Hattie was an elderly widow who lived in Prince George. She owned a cabin...

3/       Hattie was an elderly widow who lived in Prince George. She owned a cabin on Vancouver Island. Percy, who lived in Saanich, British Columbia, was interested in purchasing the cabin and land owned by Hattie. On September 10, he wrote a letter to Hattie in which he offered to purchase the cabin and land for $125,000. Hattie received the letter on September 15, and immediately faxed a letter to Percy offering to sell the cabin and land to him for $150,000. Percy did not respond to the fax immediately, but on a business trip to Prince George on September 22, he spoke to Hattie about the cabin in an effort to determine if Hattie might be willing to reduce the price. In the past Hattie had been a good real estate agent and she enjoyed the negotiation process. Hattie replied that her price was "firm" at $150,000.

When Percy returned to Saanich, he sent a letter to Hattie purporting to accept her offer to sell the cabin and land at $150,000 subject to him obtaining a mortgage of not less than $125,000 at an interest rate of not more than 8% by October 5. The letter was posted at 11:40 a.m. on September 23, but through a delay in the mail, was not delivered to Hattie in Prince George until 4:20 p.m. on September 28.

         

In the meantime on September 26, Sneaky, Hattie's nephew, was able to convince Hattie to sell the property to him for $75,000.00. Sneaky was a sophisticated business man with a charming personality. He told her that if she sold him the property he would ensure that he would invite all the nieces and nephews down for yearly family gatherings. Hattie was touched by his family concern and she transferred the property to Sneaky on September 27 in exchange for $75,000.00.

Sneaky also had a dark side to him. He had planned to immediately start growing unlicensed cannabis (ie. illegal) on it and he was arrested two months later for cultivating it illegally. When the nieces and nephews questioned him he told them that he paid good value for the property and that they should drop dead.

Describe the legal positions of the parties.

Solutions

Expert Solution

Case in brief:

1. Hattie was an elderly widow, and owned a cabin on Vancouver Island.

2. Percy was interested in purchasing the cabin and land owned by Hattie. On September 10, he wrote a letter to Hattie in which he offered to purchase the cabin and land for $125,000.

3. Hattie received the letter on September 15, and immediately faxed a letter to Percy offering to sell the cabin and land to him for $150,000.

4. Percy did not respond to the fax immediately, but on a business trip to Prince George on September 22, he spoke to Hattie about the cabin in an effort to determine if Hattie might be willing to reduce the price. In the past Hattie had been a good real estate agent and she enjoyed the negotiation process. Hattie replied that her price was "firm" at $150,000.

5. When Percy returned to Saanich, he sent a letter to Hattie purporting to accept her offer to sell the cabin and land at $150,000 subject to him obtaining a mortgage of not less than $125,000 at an interest rate of not more than 8% by October 5. The letter was posted at 11:40 a.m. on September 23, but through a delay in the mail, was not delivered to Hattie in Prince George until 4:20 p.m. on September 28.

6. In the meantime, on September 26, Sneaky, Hattie's nephew, was able to convince Hattie to sell the property to him for $75,000.00. Sneaky was a sophisticated business man with a charming personality. He told her that if she sold him the property, he would ensure that he would invite all the nieces and nephews down for yearly family gatherings. Hattie was touched by his family concern and she transferred the property to Sneaky on September 27 in exchange for $75,000.00

7. Sneaky also had a dark side to him. He had planned to immediately start growing unlicensed cannabis (ie. illegal) on it and he was arrested two months later for cultivating it illegally. When the nieces and nephews questioned him, he told them that he paid good value for the property and that they should drop dead.

Explanation:

Explanation:

Legal position of the parties:

1. Percy:

As Percy offered Hattie to purchase her land and cabin with $125000. Hattie made a counter offer to sell those at $150000. Again Percy made a counter offer that is a qualified one, stating that, obtaining a mortgage of not less than $125000 and with an interest rate of not more than 8% by October 5.

A counteroffer means the original offer to be rejected and to be replaced with another one. The counteroffer gives the original offeror three options:

1. Accepting the counteroffer.

2. Rejecting the counteroffer.

3. Making another offer.

There would be no binding contract between the parties who are involved until one accepts the offer of another person.

As in this case the counter offer was not accepted by Hattie, so it would not lead to a valid enforceable contract, as it lacks the valid offer backed by a valid acceptance and certainty of the agreement.

2. Sneaky:

He planned to grow unlicensed cannabis, that is illegal in Prince George, and was arrested two months later for the same. The following would lead to criminal charge:

1 A person 18 years old or more, if distributes cannabis to a minor, they can face upto 14 years of imprisonment.

2. Possessing a budding in public, can move up to four plants in a public place.

3. Selling cannabis without a license.

4. If illicit cannabis is sold, produced or distributed from a person that was banned from doing so. If someone grows more than four plants at home, that would be considered as illicit cannabis.

In this case Sneaky would be liable to criminal proceedings according to common law.

Regarding the comment made by Sneaky, that "they should drop dead", it questions whether the words uttered are in the form of a threat or violence. Many often used to use this word ' drop dead. Take one example, if a driver shouts by throwing this word whose car we had just cut in front of on the freeway, the voice and intensity would be the same that of a threatening, but that does not amount to threat in law. In this case also, the interpretation of the same would not amount to any legal threat.

3. Hattie:

As Hattie has already transferred the property as on 27th of september, so she would not be liable for any acts conducted by Sneaky, if the fact was unknown to her regarding the illegal cultivation of the unlicensed cannabis.


Related Solutions

Hattie was an elderly widow who lived in Prince George. She owned a cabin on Vancouver...
Hattie was an elderly widow who lived in Prince George. She owned a cabin on Vancouver Island. Percy, who lived in Saanich, British Columbia, was interested in purchasing the cabin and land owned by Hattie. On September 10, he wrote a letter to Hattie in which he offered to purchase the cabin and land for $125,000. Hattie received the letter on September 15, and immediately faxed a letter to Percy offering to sell the cabin and land to him for...
Mary McDonald was an 86-year-old widow who lived in her own home. She complained frequently about the high cost of maintenance of her house and the high property taxes she paid.
CONTEMPORARY CANADIAN BUSINESS LAW: Chapter 11, Page 209, Case 7Mary McDonald was an 86-year-old widow who lived in her own home. She complained frequently about the high cost of maintenance of her house and the high property taxes she paid. Mrs. McDonald eventually felt it was necessary to cancel her fire insurance to reduce her household expenses. However, she handled all her own business affairs, and maintained herself in her home. Mary’s daughter, a real-estate agent, was aware of her...
Mrs. Smith is a 75 year old widow who is very active and healthy. She was...
Mrs. Smith is a 75 year old widow who is very active and healthy. She was brought in to the ED after collapsing at the grocery store. Mrs. Smith explains to the nurse practitioner she doesn't know what happened but she has been feeling exhausted and no energy for the last month. She tells the nurse practitioner, " I must be getting old, I am slowing down." The nurse practitioner is suspecting there is more going on than just age....
Lorraine Terrance, an 83-year-old widow who has lived alone since her husband died 6 months ago,...
Lorraine Terrance, an 83-year-old widow who has lived alone since her husband died 6 months ago, is in the early stages of Alzheimer’s disease. She has a history of cardiovascular disease and hypertension and has been admitted to the local hospital for observation after complaints of chest pain. At present, she is very anxious and agitated. The admitting nurse received a telephone call from Mrs. Terrence’s daughter, who lives out of town. The daughter states that her mother has experienced...
Greta, an elderly investor, has a degree of risk aversion of A = 3. She is...
Greta, an elderly investor, has a degree of risk aversion of A = 3. She is pondering two portfolios, the S&P 500 and a hedge fund. The S&P 500 risk premium is estimated at 5% per year, with a standard deviation of 20%. The hedge fund risk premium is estimated at 10% with a standard deviation of 35%. The return on each of these portfolios in any year is uncorrelated with its return or the return of any other portfolio...
Siegel (1990) found that elderly people who owned dogs were less likely to pay visits to...
Siegel (1990) found that elderly people who owned dogs were less likely to pay visits to their doctors after upsetting events than were those who did not own pets. Similarly, consider the following hypothetical data. A sample of elderly dog owners is compared to a similar group (in terms of age and health) who do not own dogs. The researcher records the number of visits to the doctor during the past year for each person. The data are as follows:...
Show all work and answer in complete sentences Gigi found that elderly people who owned pets...
Show all work and answer in complete sentences Gigi found that elderly people who owned pets were less likely to pay visits to their doctors after upsetting events than were those who did not own pets. Similarly, consider the following hypothetical data. A sample of elderly pet owners (n = 6) is compared to a similar group (in terms of age and health) who do not own pets (n = 5). The researcher records the number of visits to the...
Grace Markham is a 63-year-old widow who lives alone. She has a history of rheumatic heart...
Grace Markham is a 63-year-old widow who lives alone. She has a history of rheumatic heart disease manifested by moderate mitral valve stenosis with slight mitral insufficiency. She has been maintained on digoxin, 0.25 mg PO daily, for several years, with few adverse effects. Compliance with therapy has generally been excellent. She understands the drug therapy and her 3-g sodium diet. She was admitted to the hospital complaining of dyspnea on exertion, ankle edema, mild chest pain on exertion, and...
1. Research has shown that elderly people who owned dogs were less likely to pay visits...
1. Research has shown that elderly people who owned dogs were less likely to pay visits to their doctors after upsetting events than were those who did not own pets. Similarly, consider the following hypothetical data. A sample of elderly dog owners is compared to a similar group (in terms or age and health) who do not own dogs. The researcher records the number of visits to the doctor during the past year for each person. The data are as...
Case Study—The Client With Cardiovascular Disease Grace Markham is a 63-year-old widow who lives alone. She...
Case Study—The Client With Cardiovascular Disease Grace Markham is a 63-year-old widow who lives alone. She has a history of rheumatic heart disease manifested by moderate mitral valve stenosis with slight mitral insufficiency. She has been maintained on digoxin, 0.25 mg PO daily, for several years, with few adverse effects. Compliance with therapy has generally been excellent. She understands the drug therapy and her 3-g sodium diet. She was admitted to the hospital complaining of dyspnea on exertion, ankle edema,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT