Case Analysis : Bernie Lives

906 WordsMay 20, 20164 Pages
Facts Bernie lives in Richmond, VA. On February 1, he puts an ad in his local newspaper, advertising his 2006 Ford Fusion for sale for a $13,500 asking price. After waiting for a few weeks with no offers, on March 1, Vivian offers to purchase the vehicle from Berne for $12,500 for the car; but states she needs three weeks to raise the money. Bernie agrees to wait if Vivian will put down a deposit of $1,000. Vivian agrees and Bernie hastily drafts a one-page agreement as follows: Bernie agrees to sell his 2006 Ford Fusion to Vivian for $12,500 and Vivian agrees to purchase the same for such price. The transaction shall take place no later than March 31. In the event that the seller breaches this agreement, the seller must refund the purchaser 's deposit, but the parties shall be limited to this remedy and only this remedy. In the event that the buyer breaches this agreement, the seller may keep the buyer 's deposit, but the seller shall be limited to this remedy and only this remedy. Vivian reads and signs the agreement and gives Bernie a check for $1,000. However, two weeks later, Vivian realizes that she 's not going to come up with the $12,500 to pay for the car. So, on March 24, she calls Bernie to tell him that she 's pulling out of the deal. Bernie says, "Fine, but I 'm keeping the deposit in accordance with our agreement." Vivian sues for her $1,000 deposit back, claiming that there was no mutuality of consideration for the agreement and that the contract

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