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Who would win this case?

Discussion in 'Contract Law' started by Specialist, Nov 8, 2011.

  1. Specialist New law student

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    Person A owns a piece of land and has signed a contract to sell the land to Person B. A property appraisal was made and it was determined that the price of the land was lower than the initially bargained amount. According to the clause, if the cost of the land is lower than the agreed amount and person A and person B are not able to agree on the purchase price of the offer then person B will be able to declare it void. Person B's lawyer sent a letter a few days after the appraisal of the land statting that the contract is void. There were no efforts from either party to negotiate a new price. Person A sued person B.

    Who would win this case?
    Specialist, Nov 8, 2011
    #1

  2. slobrob Moderator

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    Person B
    slobrob, Nov 8, 2011
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  3. Specialist New law student

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    Hi slobrob,

    Thank you for the reply to my question. :) However, could you explain me the reasoning behind why you choose B? Here are some questions I have for you:
    (1) The clause was that, if the appraisal price was lower than the initial agreement, then both A and B would negotiate. However there were no negotiations. So how can B's lawyer send in a letter stating that the contract is void?
    (2) Should not have B's lawyer contacted A to negotiate the price before sending a void contract notice?
    (3) If there was any deposit paid to A at the time of signing the contract, (before the appraisal price was found out) can B file for claims for damages?

    --Specialist
    Specialist, Nov 9, 2011
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  4. Molineux Super Moderator

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    According to the clause, if the cost of the land is lower than the agreed amount and person A and person B are not able to agree on the purchase price of the offer then person B will be able to declare it void. -

    1. There is no law requiring parties to negotiate in good faith.
    2. The original clause is void for uncertainty and therefore unenforceable.
    Molineux, Nov 9, 2011
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