Danny Davidson sold a single family home to Paul and Priscilla Peterson. A long-term relationship between Danny and Paul is the basis for not including a written agreement. The simple contract was made orally and only included the legal object and the amount to be paid. Danny did not disclose a dispute with his neighbor over boundary lines or include information about a soil subsidence in the front yard he claims not to have known about.
Four elements are necessary for a contract to exist. According to Kubasek et al., (2012) “These elements are the agreement, the consideration, contractual capacity, and a legal object,” (p. 304). The agreement consists of an offer from one party and an acceptance from…show more content…
If Paul and Priscilla were going to make changes to the property it is their responsibility to make sure the property is in proper condition to accommodate those changes. The bathroom additions and landscaping were not part of the original agreement and Danny cannot be held reasonably liable for not predicting what changes the Petersons would make to the property.
Danny may use lack of proper form as a defense against breach of contract. The objective theory of contracts “means we base the existence of a contract on the parties’ outward manifestations of intent and we base its interpretation on how a reasonable person would interpret it,” (Kubasek et al., 2012, p. 306). A reasonable person may assume that the buyer of the house was planning on living in it and possibly making alterations to the house. It is not reasonable to assume that immediate upgrades will be made or that expansion of the home will be done if the buyer does not state this intent or state issues with the current condition of the home. Danny did not partake in landscaping and is not an expert or professional in the field so it would not be reasonable to assume he was aware of the soil issues.
Remedies Paul and Priscilla may have include compensatory damages, nominal damages, punitive damages, liquidated damages, rescission and restitution, specific performance, or injunction. Some form of damages or rescission and restitution seem the most