11.Ziggy has made an offer to guarantee the payment of the debt of Ray.
12.Ziggy’s promise would be unenforceable, unless it was made in writing and signed by Ziggy.
13.The contract of guarantee is subject to the Statute of Frauds.
14.If Ziggy made the guarantee in writing, and signed the document, the guarantee would not be enforceable until Ray defaulted on a demand for payment by Rita.
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.
15.The verbal agreement is valid and enforceable if the witnesses testify in court that an agreement of purchase and sale was made.
16.The verbal agreement is unenforceable.
17.Ravi may successfully plead the Statute of Frauds as a defence.
18.Ravi may successfully plead that his words were agreement in principle only.
19.The gallery can successfully answer all of Ravi’s case by raising the parol evidence rule.
Anne met Adriana while shopping, and in the course of conversation, mentioned that she had a motorcycle for sale. Adriana was familiar with Anne’s motorcycle, and offered to purchase it for $500. Anne accepted the offer, and Anne and Adriana walked to Anne’s home to get the motorcycle. When they reached Anne’s house, they were told by Anne’s father that the motorcycle had been stolen earlier in the day, and was subsequently found by the police in a badly damaged condition in a local stone quarry.
20.Anne and Adriana made a valid contract, and Anne must deliver to Adriana the motorcycle in the condition that it was in before it was stolen.
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