Contract Law: Case Summary

1738 Words Aug 14th, 2014 7 Pages
Assignement 1 contracts

Sayres v. Wheatland Group, L.L.C., 79 Va. Cir. 504 (Va. Cir. Ct. 2009)
CASE SUMMARYPROCEDURAL POSTURE: Plaintiff filed suit against defendants alleging that the contract for the construction and sale of a home that was at issue in this case was void, invalid, and unenforceable. Plaintiff also alleged that he was entitled to rescission and cancellation of the same contract. Defendants filed a counterclaim for specific performance of the contract of sale. Plaintiff moved for partial summary judgment and demurred to defendants ' counterclaim.

OVERVIEW: Defendants sought to apply equitable principles in seeking specific performance of the contract. The disposition of the instant motion for partial summary
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The court found that the "power of sale" in the deed of trust necessarily implied the power to sue the company for breach of the contract of sale. The company presented no authority for the proposition that the trustee lacked authority to sue alone to enforce the foreclosure sale contract. However, because the contract provided that the company 's sole remedy in the event of the trustee 's default was a refund of its deposit, the trustee freed himself of any obligation to perform his contract with the company. Consequently, the contract lacked mutuality and could not be enforced.

OUTCOME: The demurrer was overruled as to the trustee 's authority; it was sustained as to the lack of mutuality in the agreement.
[*378] 3. Lack of Mutuality of Contract

The last issue presented is whether the Memorandum of Sale executed between Mr. Busman, as trustee, and Beeren, as foreclosure sale purchaser, lacked mutuality because the contract 's limitation clause negates any remedy against the trustee should he elect not to perform the foreclosure sale agreement.

HN6"Mutuality of contract as now commonly understood should properly be taken to be sufficiently complied with when there are promises on each side that something shall be done for the benefit of the other side furnishing therefor [sic] considerations by each party, although they may relate to different terms of the contract and may be

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