Breach of Contract Case Study

Bob Oldman owned a cottage on Wind Lake. He really didn’t have enough time to enjoy the property during the summer, so he posted a For Sale by Owner sign, giving his phone number. On July 10, Dave Honigman called to ask about the property, and Bob agreed to show it to him the next day.

            Bob showed Dave around the property and Dave carefully inspected everything. After looking it over, Dave asked what Bob was asking for it. Bob replied that his price was ,000. Dave looked rather surprised, but said, “I’ll think it over.” They exchanged business cards and Dave left.

            By July 19, Bob heard nothing from Dave and thought that he had probably priced the cottage too high. Therefore, he typed a note with which read, “Dear Dave: I am offering to sell you my cottage on Wind Lade for only ,000. Please reply by July 22 if you accept my offer.” Bob mailed his offer the same day.

            Dave received Bob’s offer on July 20. He immediately replied as follows, “Dear Bob, I hereby accept your offer on the cottage for ,000, providing that you repair the rotted planks in the dock.” He signed it and mailed it the next morning.

            On July 22, Dave decided that he would rather rebuild the entire dock himself, and wrote to Bob, “I’ll take the property just as it is for ,000.” He signed and immediately mailed his letter.

            On the evening of July 22, Bob was contacted by Mitch Moneybags, a big resort developer. Mitch has a plan to buy up all the property on the south shore of Wind Lake and turn it into a resort complete with a gold course, tennis courts, swimming and boating. He told Bob that he was willing to pay him ,000 for his land. When he heard the figure, he forgot all about Dave, and he signed a contract to sell to Mitch.

            On July 23, Dave’s first letter was delivered to Bob’s house and on July 24, the second letter was delivered. Bob returned from a long weekend on July 26 and read both in the order they were sent. He called Dave and told him that he had made a deal to sell to Mitch. Dave replied that they already had a contract before Mitch had gotten involved and that it was a breach of contract for him to sell to Mitch for more money.

 

Does Dave have a good case against Bob for breach of contract? Why or why not? If so, what remedy should he seek?

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