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:

Disclose

To reveal or make known information, often in the context of legal, financial, or commercial transactions.

Fraudulent Alteration

The unauthorized change or modification of a document with the intent to deceive or defraud.

Promissory Note

A written, legally binding document where one party promises to pay a specified sum of money to another under agreed terms.

Electronic Signatures

Digital forms of a signature used to consent to or approve documents online, having the same legal standing as handwritten signatures in many jurisdictions.