Contract Essay 2

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EJD

CONTRACTS ESSAY TWO

Pat v Dan

Bilateral Contract - A bilateral contract is a contract in which a condition is created and certain performances must take place. Pat and Dan entered into a bilateral contract when they stated the conditions which is an act or event that qualifies a promised performance. This promise was that Dan would purchase a $250,000 home for Pat to live in until her settlement came in. Dan also verbally agreed to sell the house to Pat at the purchase price plus a commission, which would be determined at a later date.

Classifications of Conditions

Time Condition - The precedent (an act or event that must occur or exist before a duty to perform a promise arises) act in the case was the purchase of the home for Pat. The time agreed for Pat to pay back the purchase was when her settlement was finalized and she received her check.

Concurrent Conditions – A concurrent condition is where both parties agree to exchange performances at the same time. Both Pat and Dan agreed to have Dan purchase the home and for Pat to pay the purchase price plus commission after she received her settlement. We do not know if there was any agreement to pay partial payments (rent) during her time living in the home until the settlement was finalized.

Pat did send in a check with a request for the commission price during her stay each month, although Dan did not respond to her request he did accept the payment. She received her settlement eleven months after this agreement took place which was within the time condition set by both parties.

Pat also fixed up the house by installing new carpeting, window coverings and a patio cover at the cost of $8000 within the first 6 months.

Dan entered into an oral contract with Pat upon finding a home she wanted to buy. The 1st agreement was that Dan entered is that he would purchase the home and allow Pat to live in the home until she came up with the money to purchase the home. The 2nd agreement Dan...