Joe Saw an Ad in a Paper for the Sale

question 68

Multiple Choice

Joe saw an ad in a paper for the sale of a house in a residential area of Victoria. He approached Sam, the owner, and after some negotiation Sam orally agreed to sell the house to Joe for $750,000. Joe gave Sam $100,000 cash as a partial payment, the rest to be given upon transfer of the house. Two days later, Sam changed his mind and sent Joe a letter referring to the deal and stating that he would not honour the agreement. Which of the following is correct with respect to the legal position of the parties? Assume all the facts can be proved.

• A) Sam is not bound by the agreement as the contract was not in writing.
• B) Sam will not be bound because no oral agreement is ever enforceable.
• C) Even if the letter gives evidence of the deal in writing, it cannot satisfy the requirement of writing. It is the whole contract that must be in writing.
• D) If the letter mentions the important terms (such as price) and identifies the specific property, Sam must go through with the contract.
• E) The contract is void unless it has been partially performed.

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Definitions:

Company Reputation

The collective assessment by the public of a company's actions, ethics, and ability to deliver desired outcomes.

Crisis Recovery Stage

The phase in crisis management where an organization works to restore stability, rebuild reputation, and implement changes to prevent future crises.

Social Responsibility

The idea that businesses and individuals should act ethically and contribute positively to the welfare of society.

Benoit's Theory

A communication theory by William L. Benoit focusing on image repair discourse, outlining strategies individuals or organizations use to mitigate damage to their reputation.