StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Case Study Example

Comments (0) Cite this document
Summary
He contracted Willard, who agreed to purchase the house and the lot at that agreed amount of the money. According to the terms of the contract, Willard was to make a 10% deposit of the purchasing price as down…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Case
Read TextPreview

Extract of sample ""

Law of Contracts Law of Contracts What Happened Carnack wanted to sell his house and lot at a total cost of $100,000. He contracted Willard, who agreed to purchase the house and the lot at that agreed amount of the money. According to the terms of the contract, Willard was to make a 10% deposit of the purchasing price as down payment and then clear the balance later at the stipulated time as demanded in the contract. According to the agreement, in an event that the buyer breached the deal, the seller (Carnack) would take hold of the down payment as liquidated damages. Willard made the required down payment of $10,000 but then was not able to top up the balance as agreed due to financial challenges. After a period of two weeks, Carnack sold the house and lot to Balkan at a cost of $105,000. Willard wanted Carnack to refund him the deposit that he made to him, but Carnack said that Willard breached the contract, and the deposit was entitled to him as required by the contract.
What the Law Says
According to the law, in an event that the contract is breached, regardless of the form that it takes, the innocent party is always entitled to take a step for the damages. In the case study, the innocent party is Carnack, and by law he is within his legal right to terminate the contract that he made with Willard and retain the deposit as liquidated damages as noted by Koffman & McDonald (2007).
Holding
The contract that Willard and Carnack entered had a provision for liquidated damages clause in it. That provision made it clear that should Willard breach the agreement that he signed with Carnack, then the 10% deposit would be considered as liquidated damages. According to Burling (2011) that clause, therefore, made it clear that Carnack was entitled to the deposit after Willard breached the contract. Generally in most cases, the court always maintains that the clause with the liquidated damages has to be adhered to. The clause has to be respected even if it implies that the affected individual gets less than his or her real damages resulting from the breach. Therefore, Carnack is right in taking the 10% deposit made to him by Willard as part of the down payment since Willard breached the contract.
Reasoning
According to Wilmott et al. (2009), it can be argued that Carnack terminated the contract that he had with Willard based on the following principles of the law. First Willard committed an anticipatory breach. Anticipatory breach is a situation where the buyer states in the form of writing that s/he will not honor the agreement or will do it on terms that were not initially agreed upon. In the case of Carnack and Willard, Willard breached the contract or rather went contrary to what was stipulated in the contract agreement. Therefore, Carnack is legally right in terminating the contract.
Willard did commit fundamental breach with respect to the contract. The outcome of the breach gave Carnack the mandate to terminate the contract since Willard had done contrary to what was stipulated in the contract. Thus, Willard cannot blame Carnack because before they entered into the agreement, they had agreed to the terms and conditions of the contract (Pearce & Halson, 2007).
Lastly, Carnack was very right in terminating the contract with Willard since the law provides room for that. The law states that what people have agreed vividly or a term that common law treats as a condition that affects the core of the contract, any breach of that stated term can be terminated once without referring further to circumstances and facts surrounding it. It can be argued that since Willard breached the contract, Carnack (the innocent party) was right to terminate the contract.
References
Burling, J.M. (2011). Research Handbook on International Insurance Law and Regulation.
Edward Elgar Publishing.
Koffman L, MacDonald E. (2007). The Law of Contract. Oxford University Press.
Willmott, L, Butler, D, Christensen, S, & Dixon, B (2009). Contract Law. Oxford
University Press, North Melbourne
Pearce, D and Halson, R (2007). Damages for Breach of Contract: Compensation, Restitution, and Vindication. Oxford Journal of Legal Studies. ISSN 1464-3820 Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Case Study Example | Topics and Well Written Essays - 500 words - 17”, n.d.)
Case Study Example | Topics and Well Written Essays - 500 words - 17. Retrieved from https://studentshare.org/finance-accounting/1698164-case
(Case Study Example | Topics and Well Written Essays - 500 Words - 17)
Case Study Example | Topics and Well Written Essays - 500 Words - 17. https://studentshare.org/finance-accounting/1698164-case.
“Case Study Example | Topics and Well Written Essays - 500 Words - 17”, n.d. https://studentshare.org/finance-accounting/1698164-case.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Case

Case

...recruiters to be over-lenient when they are choosing candidates that would not belong to their own groups. The firm sure has a formal approach to the entire hiring process as it hands over tabular sheets to interviewers which they have to fill in with their comments and evaluations of the respective attributes as detailed in those tabular sheets of the candidates they had interviewed. But the most important and surely unique hiring criteria of S G Cowen is often they bend their rules if they feel they have chanced upon a really brilliant candidate who would be an asset to the company if nurtured and trained properly. In such rare cases, they even create a special job or position for such a candidate. If the company feels that they have...
5 Pages(1250 words)Case Study

Case

...? 26 March Answers Self awareness, self management, self motivation, empathy, and social skills are the five dimensions of emotional intelligence. Alex measured low in emotional intelligence on all of these dimensions except for self awareness. He knew why he was protesting against the company in any way he could. He was not approved by Marilyn in the performance and salary review. He thought he had worked in the company with too much dedication, and when he did not see his efforts rewarded, he protested against the management. So, he measured high on the self awareness. Other than that, he did not control his emotions, so his score on self management is very low. He lost all hope for building his career in the company... 26 March Answers...
1 Pages(250 words)Case Study

Case study Case Study

...appropriate in this case (2 marks) An order for specific performance of the contract was appropriate because of two reasons: 1) the Wirraway was not at the time in flying condition, and 2) the plane was in a hangar owned by a third party. Question 10: Why was the final order not made in this hearing (1 mark) It was ruled that a binding contract was formed between the plaintiff3 and the defendant4 and that it should be specifically enforced.5 Further, the two parties would be given a chance to reach agreement on the precise nature of the agreement. Question 11: Why was the matter heard in the Supreme Court (4 marks) This matter was heard in the Supreme Court because the defendant kept appealing to higher courts...
6 Pages(1500 words)Case Study

Case studies Case Study

... Paper Question In Roth, the Court refuses to find a protected liberty interest because the plaintiff was "simply not rehired." Does the Court mean to suggest that the plaintiff was not injured by the non-renewal What are the implications of non-renewal for a faculty member's career path P.242 In Board of Regents of State Colleges v. Roth, the Supreme Court held that a non tenured teacher does not have a property interest in his or her teaching position. Likewise, the Supreme Court also found that a public college professor dismissed from an office held under tenure provisions, and college professors and staff members dismissed during the terms of their contracts, have property interests in continued employment. Thus because... Paper...
4 Pages(1000 words)Case Study

Case

... Minding the Store: Case Analysis Question What guidelines related to empowerment were violated by Ken Hoffman? By Ruth Cummings? From the nine prescriptions for fostering empowerment, it was evident that Ken Hoffman violated the following: (1) articulating clarity in vision and goals; (2) providing support; (3) enhancing emotional arousal; (4) providing information; and (5) creating confidence. It was apparent that the only goal that Ken Hoffman provided to Ruth Cummings when she was promoted as branch manager for the Saks Fifth Avenue store was that he was putting her in charge of the store and that “your job would be to run it so that it becomes one of the best stores in the system” (Author 459). The goal was not consistent... Minding...
2 Pages(500 words)Essay

Case

... Task Management The company of Lincoln electric used the strengths of the company as their strategy. They did this by lookingat their manufacturing capabilities and methods of reducing its cost. In so doing, they were able to sell their goods at a cheaper price. This is because they did not spend much when manufacturing the goods. 2. The electric company used the prospector method to manage its strategy, mission, vision and the culture. This is because they came up with the idea of taking their prices low independently. 3. The management of the electrical company has ensured that they motivate their employees by looking at their behaviors and learning the best the best ways that they work. This ensures that they perform better... Task...
2 Pages(500 words)Essay

Case

... Finance and Accounting March 30, MEMO For: Will as well as Jack As of 30 March Dear Jack and Will: I have done the computation to help you with your four questions. The computations and explanations on how the answers were arrived at are clearly discussed below for your perusal. Question 1 Computation per boat unit sales sell price sales 2 units $20,000.00 Vc $8,000.00 Cm $24,000.00 $12,000.00 Fc $24,000.00 profit $0 The breakeven sales amount is the sale that results to zero profits (Hilton, 2011). Since the fixed cost is $24,000. There must be enough sales cash inflow to pay for the $24,000 fixed cost amount. Consequently, the contribution margin must be equal to the $24,000 fixed costs amount to arrive at the zero profit... Finance and ...
3 Pages(750 words)Assignment

Case

...assessment of the companies and settle on one based on the level of satisfaction. 7. Should company X take any action against the candidate or company Y? Why or Why not? A company should not take any action against company Y or the candidate. Case in point is that the candidate had nothing legally binding him to Company X, and therefore, no proceedings can be initiated against the two parties. 8. How can situations like this be avoided? Situations like this can be avoided by having legal agreements that bind parties into an agreement. On the other hand, companies should provide better benefits for candidates taking the jobs to avoid second thoughts. 9. Describe what company X should have done to maintain the candidates...
1 Pages(250 words)Coursework

Case

... an upward trend. The audits fees increase by $1.0 while the audit-related fees and the tax fees increased by $1.9 and $3.4 respectively. As in the case General Electric, after the implementation of the Sarbanes-Oxley, the figures still increased (amazon.com). The increase here is more uniform and consistent unlike the case of General Electric. The audit fees and the audit related fees rose consistently between 2004 and 2010. From the report quoted in the press, it is clear that there is significant cost increment for General Electric and Fortune 100 companies. In the GE exhibits given (1 and 2), there is a considerable increment, both in the audit fees and the audit related fees, incurred by both companies to the auditors. The increment...
2 Pages(500 words)Research Paper

Case

.... The correlation becomes stable if it has a position coefficient of 1, and weak if the coefficient is negative. If it is zero, then at that particular moment there is no relationship between the two variables. In the same case, regression is used to determine the sales volumes. Sales=Number of vehicles sold*selling price (Opsmgt.edublogs.org,). The other company is the Netflix. It deals with the online distribution of movies, videos, and music. One of the tools used to forecast the sales of the enterprise is the descriptive statistics. The tool analyzes the trend in the sales. For instance, it determines the number of videos sold via the online market, the frequency of visit by the registered customers, as well as the...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Case for FREE!

Contact Us