Breach of Contract
Peopleusually sign contracts after they agree to do something together.Such agreements help the parties involved to avoid the unnecessaryhassles that are associated with business transactions by indicatingthe responsibility of each party (TheLaw Handbook, 2017).However, such accords are not foolproof one or both sides may failto honor their pledge. Thus, a breach of contract can be viewed as afailure that lacks a legal premise to carry out a promise that formseither a part or the entire contract (JudicialEducation Center, 2017).In the case of Johnny and Mark, various elements of the contract werenot fulfilled. Johnny breached the deal that the two parties hadsigned by opting to purchase another car before the time that he hadgiven Mark to think about the offer had expired. He also reneged onhis promise to pay $10,000 for failing to honor the agreement. Mark,on the other hand, kept his end of the deal by not selling his car toanother party before the 2-week duration had expired. The followingdiscussion reveals both the elements of the contract that weresatisfied and those that were breached in the agreement between Markand Johnny.
Consideringthe above viewpoints, Article 2 of the Uniform Commercial Codeindicates that a constructive stipulation of performance requires theparties that sign a contract to fulfill the obligations that theagreement highlights (LegalInformation Institute, 2017).Thus, by failing to buy Mark’s car, Johnny breached the contractthat he had signed. The agreement indicated that Mark had a two-weekwindow to think about the offer that Johnny had proposed to himJohnny had told Mark that he would purchase his car at $30,000. Inother words, although Mark had not given Johnny an answer beforeJohnny decided to buy another vehicle, the time-frame for thecontract to be withdrawn had not expired thus, Johnny failed toperform his obligations as stipulated by the contract.
Secondly,Johnny’s breach of contract is enforceable because the UniformCommercial Code (2-201 (1)) indicates that any price that goes above$500 is only applicable if some form of writing shows that theconcerned parties have made a contract of sale (LegalInformation Institute, 2017).In this regard, Mark can take Johnny to court because Johnny wrotethat he would purchase Mark’s car at $30,000. He also indicatedthat his offer was valid for two weeks. Therefore the UCC, under2-201(3a), stipulates that an agreement that fails to satisfy therequirements of 2-201(1) is enforceable if the goods have beenexclusively manufactured for the buyer (LegalInformation Institute, 2017).In the case of Johnny and Mark, the car could not be sold to anyother person except Johnny. Therefore, even if Mark had received abetter offer during the 2-weeek period, the law obliged him to refuseit.
Finally,Johnny’s decision to buy another car during the period when thecontract between him and Mark was in place and his refusal to payMark’s $10,000 compensation reveal that his decision to withdrawthe offer was not lawful. Article 2-270 of the UCC indicates that aperson has the right to cancel an order or rescind it if the groundsfor acting in such a way can be deemed legitimate (LegalInformation Institute, 2017).Johnny both bought a new car and refused to compensate Mark for afailure to deliver on his promise. Therefore, Johnny’s decision towithdraw his offer appears dissatisfactory. As a result, Mark can sueJohnny on these grounds.
Ina recap of the above discussion, only one party honored the terms ofthe contract. Mark remained faithful to the agreement by not sellinghis car to someone else before the expiration of two weeks. Johnny,on the other hand, breached the contract by withdrawing his offerbefore the two-week period had expired and reneged on his promise topay for failing to honor their agreement, as discussed above.
JudicialEducation Center. (2017). Breachof Contract — Judicial Education Center. Jec.unm.edu.Retrieved 12 April 2017, fromhttp://jec.unm.edu/education/online-training/contract-law-tutorial/breach-of-contract
LegalInformation Institute. (2017). §2-201. Formal Requirements Statute of Frauds.. LII/ Legal Information Institute.Retrieved 12 April 2017, from https://www.law.cornell.edu/ucc/2/2-201
LegalInformation Institute. (2017). §2-720. Effect of "Cancellation" or "Rescission"on Claims for Antecedent Breach.. LII/ Legal Information Institute.Retrieved 12 April 2017, from https://www.law.cornell.edu/ucc/2/2-720
LegalInformation Institute. (2017). §2-721. Remedies for Fraud.. LII/ Legal Information Institute.Retrieved 12 April 2017, from https://www.law.cornell.edu/ucc/2/2-721
TheLaw Handbook. (2017). Whatis a contract? – The Law Handbook. TheLaw Handbook.Retrieved 12 April 2017, fromhttp://www.lawhandbook.org/07_01_01_what_is_a_contract/
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