LEGL 3000 – Business Law Woodbury School of Business Utah Valley University

CASE STUDY PROJECT Instructions: The attached packet includes a contract fact scenario, and you have been provided a separate file with a copy of a written contract and addenda related to the fact pattern. Using the case study description and materials (REPC, etc.) provided, provide detailed responses to the questions below.

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Answers should be submitted in essay form and should be uploaded to Canvas in .pdf format by the due date and time in Canvas. Please direct any questions to your professor. Lest you think that this case study and its materials are so absurdly fictitious that there is no way that this could happen in “real life,” this Case Study is based upon a case that went to all the way to the Utah Supreme Court, with some fictitious elements added to test your knowledge and understanding of additional concepts than were at issue in the original case. This kind of thing can and does happen. Please note that there are discrepancies, inconsistencies and other problems in the case description and other materials. This is intentional. Nearly all real cases have internal inconsistencies and other factual problems. Your job is to decide whether those problems are material to the legal questions raised and, if so, how they impact your decision-making. You may decide that if the facts are resolved one way over another, then the legal conclusions may be different. In your answers, you will want to explore and detail out these alternative possibilities. In presenting your answers, you should be as thorough and detailed as possible, “showing your work,” as it were, in how you arrived at your conclusions. Typically, the better answers from students are at least two pages per question. It is highly recommended that you take a good draft of your submission for this project to the Writing Lab for review and assistance well in advance of the due date.

Case Study Questions:

1. Is there a contract between any of the parties? If there is a contract(s), describe and detail the operative legal principles, how you arrived at that conclusion, and identify the parties to that contract and the contract’s terms.

2. There were several purportedly contractual negotiations or transitions in the case description. If you decided that some of those transactions do not qualify as a contract, detail and describe why.

3. Identify any defenses to enforcement that any of the parties may have and against whom they would be asserted, and whether those defenses would be successful and why.

4. Identify the available remedies that any party could request of a court, and whether a court is able or likely to provide that remedy and why.

5. Describe how the concept of agency effected the parties’ legal positions in the case study. Did the agents help or harm their clients? Why?

6. If you were the judge on this case and all the parties named in the case description were party to the lawsuit, how would you resolve the case and why? Who would end up with the property and on what terms? Who would get nothing and why?

Case Study Scenario:

Jon D’Man grew up in a small town in eastern Oregon. Jon played sports and was good enough

to earn a scholarship in baseball to his favorite university in Utah. Marsha Mello grew up in New York

City, as a Manhattenite. Although growing up in New York had its advantages, she longed to see the

wide open spaces of the western United States, and she applied to the same university in Utah that

Jon was attending. Marsha was a big fan of baseball and loved attending games to support her school.

She fell in love with the star player, Jon.

One fateful game Jon was sliding into third and caught a spike and tore the ligaments in his

knee and ankle. This accident ended his professional dreams at the young age of 17. Jon and Marsha

decided they would get married in four (4) years when they graduated. Jon had a settlement from his

injury and a good-paying, part-time job. Marsha had a large inheritance from her grandmother, to be

used only for educational related expenses. They decided to buy a home together even though Jon

was only 17 and Marsha was 21. But they wondered what they needed to do to buy a home.

Jon and Marsha were both accounting students and were taking a wonderful Business Law

class together from a wonderful professor-the same one you now have. They had a limited knowledge

of contracts, but they knew they should employ a Real Estate Agent to facilitate their purchase. They

called a local hot-shot realtor to help them find the perfect property to start their life together. After

much searching, they found a 3 bedroom 2 bath home on a nice cul-de-s8c in a quiet, newer

neighborhood on the outskirts of town.

They sat down with their Agent to fill out their offer to purchase on a Utah Real Estate

Purchase Contract (REPC). They discussed the home and its amenities. They loved the fact that the

home had an outdoor, portable hot tub under the stars. It could be easily moved under cover into the

carport in bad weather. They also loved the appliances that were in the kitchen. They particularly

loved the 6-burner, Maytag gas range. They decided to ask for them to be included in the purchase

price. The home was listed on the Multiple Listing Service (MLS) for which seemed to be a little high

for the neighborhood. Jon and Marsha decided to offer $207,000 with the seller paying 3% towards

closing costs and for title insurance and for property taxes and for needed repairs.

Jon signed the REPC on the line for the Buyer (see Page. 6). In paragraph 25 of the REPC,

Jon put the time for acceptance as 12 PM, 25 February 2016.

The REPC said on P.l that the BUYER had included a post-dated check for $5,000. The broker

marked the box “delivered” even though Marsha did not have her check book with her. She promised

the agent that she would bring it to him ASAP.

Buyer’s Broker delivered the REPC to Seller’s Broker, through a sales agent on the day after

the REPC was completed by Jon and Marsha.

Jon and Marsha had specifically marked the applicable boxes on page #1, Paragraph 1.2 for

the washer; the dryer; the frig; the water softener; and the security system. They also marked the

required boxes throughout the REPC.

NOTE #1 TO STUDENTS

You will want to read the REPC and the two addenda and ask questions as the different

sections of the REPC are covered in the related chapters of the text book.

Seller received the offer on the 21 February 2016.

Seller marked, I accept with the following conditions. Buyers’ will have one (2) day to accept

terms contained in Addendum #1.

See ADDENDUM #1: Seller returned REPC with Addendum #1 to Buyer’s Broker. Jon marked, I accept on Addendum #1 with the following conditions.

See ADDENDUM #2

Jon had his acceptance notarized the next day and gave it to his Broker, who gave it to the

Seller’s Broker. Seller’s Broker got busy and distracted, and he forgot to give it to the Seller until 10

AM. Broker reminded Seller that she only had until 12 AM to respond. Seller said that

was ok, because she would put it in the mail by 11 PM, and that would be the time of acceptance.

(She knew the mailbox rule) She mailed the acceptance at 10:15 PM. She immediately had seller’s

remorse and changed her mind. She called the Buyer at 12:30 AM and said on her answering machine,

“I reject your offer. The deal is off. I will not sell my home at any price.” The BUYERS had not yet

received SELLER’S acceptance.

Right after Buyers had mailed their last offer to Seller, but before seller had mailed an

acceptance (see addendum #2), UB Flash announced it was building just down the road from Seller’s

house. Because of this announcement, the value of the Seller’s house jumped $100 K. Marsha heard

about UB Flash’s plans and quickly called Seiler’s Broker on the phone and told him that she would

like to accepted seller’s offer on seller’s terms (see Addendum #1). She told Seller’s Broker she could

close by 15 April 2016. Seller’s Broker was way excited to make a sale. And without contacting seller,

Seller’s Broker told Buyer, “I accept your offer. You have just bought yourselves a house.” Marsha

said, “Fantastic. I’ve got all the money for the house in a trust.”

That same day, Buyer #2 who is an undisclosed agent for UB Flash, offers the Seiler over the

phone $300K cash with no conditions, as is, close in 10 days. Buyer #2 promises a $20,000 non

refundable earnest money with the oral offer. Seller does not know of her Agents actions with Marsha;

therefore, she, the Seller, promises to sign the REPC as soon as buyer #2 mails it to her. She tells

buyer #2, “I accept with no reservations or conditions.”

Jon learns of seller’s intent to sell to Buyer #2 and sues to enforce his rights under his REPC