Barbara Buyer wanted to purchase real estate from a trust, which was represented by Sam Salesperson. Barbara Buyer entered into a written agreement with the seller (representative of the trust) as well as entering into a representation agreement with Sam Salesperson, the salesperson, which denoted the dual agency disclosure. This agreement required an earnest money payment. Far before the earnest deposit deadline, Buyer asked for a two day extension in making the earnest money payment. Salesperson agreed to it and stated that he would send a written document within the same business day to confirm this agreement. Two days passed and no written document to this effect.
Buyer contacted Salesperson to ask for confirmation. Salesperson again promised to send it immediately. However, Buyer never received same. Days later, Salesperson notified Buyer that the contract was terminated.
Buyer contacted the seller (representative of the trust) to discuss the terminated contract. However, to no avail. Through Buyer’s persistence and research, Buyer learned that Salesperson never requested an extension. In fact, Buyer found out that there was a higher offer received and the property was sold at the higher price to another purchaser. Buyer sues Salesperson and the seller.
(1) Draft a memo, no longer than two (2) pages in length, that includes an appropriate heading addressed to Barbara Buyer (To, From, Re, Date)
(2) Answer the following questions:
What are the ethical issues in the scenario?
What is the cause of action?
If there is more than one, please detail each cause of action.
What is the breach of contract in this case?
Please establish the general principles and elements of a contract, in addition to the concept of breach of contract.
What are the various remedies that the buyer may have in this scenario?
(3) Cite all sources, including cases, statutes, rules, etc. (****MUST***MUST) cases and statutes!!!!!!!
(4) Submit the 2-page memo in MS Word document format via the Unit 4 Dropbox tab.