Ravi,an Art Collector,had Been Made a Standing Offer by a Gallery

question 32

True/False

Ravi,an art collector,had been made a standing offer by a gallery to purchase one of his paintings for $150,000.At shows and luncheons of the art community he had previously rejected the entreaties,knowing the painting to be worth at least twice as much.On the latest occasion of a luncheon at which Ravi was deliver an art commentary to the guests,the gallery made its offer once more.To himself,Ravi considered the offer and concluded he could use the charitable tax relief that such a sale at a loss would generate.In the course of his speech,he acknowledged and accepted the offer.Two days later,Ravi's lawyer advised him that the purchasing gallery was NOT a charitable foundation,and no tax deduction for such a "donation" could be expected.Ravi then refused to sell the painting to the gallery.On the strength of the verbal agreement of purchase and sale made in the presence of witnesses,the gallery sued Ravi for breach of contract,and for a decree of specific performance to compel Ravi to sell it the painting.
-Ravi may successfully plead that his words were agreement in principle only.

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Definitions:

Marbury v. Madison

A seminal U.S. Supreme Court case in 1803 that established the principle of judicial review, empowering courts to strike down laws and executive actions they find unconstitutional.

Presidential Veto

The power of the President of the United States to refuse to sign a bill into law, thus preventing its enactment.

Majority Vote

A decision-making process that is reached when more than half of the members in a voting body vote in favor of a proposal.

Congress

The legislative branch of the United States federal government, composed of the House of Representatives and the Senate, responsible for making national laws.