Business law case studies part 3 thank you all?

part 3





marry offered to sell mike several pieces of rare Chinese art at a very good price because they were duplicates in her own collection. Mike could not accept the offer at the time, but he did give Mary $500 in return for her promise to keep her offer open for three weeks. Mike returned with the agreed-upon balance two weeks later to find that Mary already had sold the pieces she had offered to sell to him. Mary explained that she had been able to get a better price from another buyer. she offered to return Mike's $500 and insisted that this was all she was obligated to do. is Mary right?Business law case studies part 3 thank you all?
She is not right. This is related to your first question, with the simple difference being that there was an offer and acceptance. Mike offered Mary what she deemed sufficient payment, which she then accepted (as evidenced by the fact that she took his down payment). Mary had a legal obligation to honour the contract. Look at all 6 elements:


Binding agreement: this is shown through the offer %26amp; acceptance


Competent parties: both are mentally sound, sober adults


Form required by law: A contract which can be either verbal (which this one is), or written.


Legal in purpose: These items belonged to Mary therefore she is not breaking any laws by selling them


Consideration: the promise or action that one person (the promisor) gives in exchange for the promise or action of the promisee which in this case is the $500 down payment


Genuine assent: Mary's assent was given verbally





Mary is out of luck on this one!Business law case studies part 3 thank you all?
Mike purchased an option to buy from Mary, which expired in 3 weeks.





Mike exercised his option before the 3 weeks was up.





Mary is obligated to sell Mike the artwork at the agreed upon price and Mary MUST repurchase it from the other buyer if necessary, irregardless of the cost to Mary.