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 $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.

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Expert Solution

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Explanation:

With reference to case facts, there was no contract formed between Percy and Hattie, and Sneaky is liable for inviting the nephews and nieces of Hattie to the land he purchase from Hattie for yearly family gatherings.

Hattie and Percy business arrangement

According to contract law, the case law that regulates formation of contracts, a valid contract must have at least an offer and acceptance elements.Certainly, based with the business arrangement that Hattie and Percy had, Hattie made a final offer of selling her cabin and land for $150,000 to Percy. On 23th September, Percy made a conditional acceptance.However, the counteroffer was received on 28th September, and Hattie could not accept the offer since she had already sold her land to Sneaky. This means their business arrangement had an offer but lacked acceptance.Therefore, under contract law, Percy and Hattie did not form any valid contract. For that reason, none of the party has a legal right to hold the other accountable in any a contract.

Sneaky and Hattie business arrangement

Based with the contract law, when a party (offeror) makes an offer to another party (offeree) that requires performance as a form of acceptance, and the offeree performs based on the offer terms, the two parties shave formed a valid unilateral contract.Actually, Sneaky promised Hattie that if she sold her land to him, he would invite her nieces and nephews to the land for yearly family gatherings. This is an offer that could only be accepted with performance.Therefore, after Hattie sold him the land, under contract law, she accepted the offer, which means the two parties formed a valid unilateral contract as revealed in Kologziej V. Mason case. For that reason, Sneaky should honor the contract terms and invite the nieces and nephews to the land for yearly family gatherings.

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keosha answered 9 months ago

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