Ann Wrote a $500 Check to Art as a Deposit

question 136

Essay

Ann wrote a $500 check to Art as a deposit on Art's 240Z car.The memo section of the check read: "Deposit on 1978 240Z car of Art Mole.Sale price $4500." Art initialed the memo section.When Ann returned the next day with the remaining $4000,Art said,"Sorry,I sold the car for $4,000 cash yesterday and sent your check back." The cheapest 240Z Ann can find is $5200.What are Ann's rights? Discuss the following:
a.Was a contract formed?
b.Are there statute of frauds problems?
c.Could Ann collect damages? If so,what?

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Definitions:

Total Liabilities

The aggregate of all debts and other legal obligations of an individual or company due to other entities.

Total Assets

The sum of all assets owned by a business, including current, fixed, and intangible assets, representing its overall value.

Ethics

The standards of conduct by which actions are judged as right or wrong, honest or dishonest, fair or not fair.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenues, indicating the company's profitability.