Joe Advertised His House for Sale and Sam Came to Have

question 27

Essay

Joe advertised his house for sale and Sam came to have a look at it. While there, they haggled and struck a bargain that Sam would purchase the house for $400,000. They shook hands on the deal and Sam went home. That night, while thinking about it, Sam realized that the house wasn't exactly what he wanted, and so the next day he wrote a letter to Joe stating, "I'm writing this note to let you know that I've changed my mind with respect to the purchase of your home for $400,000, and since the contract isn't valid in any case, I don't expect to hear any more of the matter. Sincerely, Sam." Joe sued Sam for breach of contract. Discuss the legal position of the parties, including any defences available to Sam.

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Definitions:

Existing Monopolies

Firms that have exclusive control over a market or product, allowing them to set prices higher than in competitive markets due to a lack of alternatives.

Interest-Rate Cost

The expense associated with borrowing funds, expressed as a percentage of the total borrowed amount.

R&D Expenditure

Financial spending devoted to research and development activities by a company or organization.

Imitation

The action of using someone or something as a model and trying to replicate or emulate their behavior, process, or product.