Question

On Monday morning, Andy and Brian enter an oral, unwritten contract for the sale of five acres of land in Delray Beach, Florida, at “$10,000 per acre.” On Tuesday morning, Andy demands that Brian pay him “$11,000 per acre” for the land. Brian refuses. Andy sues. Who should win, and why? In your answer, explain written/oral and implied/express contracts.

Answer 1

Solution: In order to make a valid contract and bilnding the each other by the terms, the parties to the contract must fulfill the 6 basic conditions of making the contract.

Here, in the given case, Andy and Brian enter into an oral contract to sale of five acres of land at a predecided price and place and an oral contract is a legally binding spoken agreement between two or more parties which is not written down. Thus it's a valid contract and binding the each party to perform their promise.

Here, when andy next day changes his mind to sale the land at the predecided price and ask a high consideration so, this is the breach of contract by andy and the other party i.e. Brian can sue him for damages. Thus, Brian's intention is right to sue him and he will win because opposit party does not stick to the terms of contract and breach the contract.

Written contract: A written contract is a contract by which two or more parties binds each other to perform their promises by writing and signing the terms of contract but not orally. A written contract helps to minimise risks as it is much safer to have something in writing than to rely on someone's word.

Oral contract: An oral contract is a legally binding spoken agreement between two or more parties which is not written down

Implied: The contract which are not entered into by parties expressly but comes in existance by the nature/impliedness of both parties or according to circumstances. These are of two types : 1. Implied in fact. 2.implied by law.

Implied in fact: A contract in which an agreement is seemingly intended among the parties involved, but not particularly orally or in writing.

Implied by law: This is also known as a Quasi-Contract. It isn’t actually a contract; rather, it is a way for the courts to rectify situations in which one party would be unfairly enriched, were they not obliged to compensate the other party.

ex: Entering into a Bus for travel, Withdrawing money from ATM, Founding someting at street etc.

Express: Express contract is a contract in which the terms of the contract are stated verbally, either orally or in writing.