Element 1: Mutual Agreement
Mr. and Mrs. Pinkman, are the fee owners of a three story home located at 9809 Margo Avenue,SmallTown, Ontario. The Pinkmans love this home dearly, but they are hoping to retire in the comingyear and the proceeds from this sale can help them create a comfortable nest egg to ease the transitioninto retirement. Over the last year, the Pinkmans have spent most of their life savings on extensiverenovations to the home, in the hopes of gaining a higher purchase price. They believe the purchaseprice they set is reasonable, fair and in line with the current market.After the home was on the market for threeweeks, the Pinkmans’ lawyer, Mr. Gardner, received aphone call from another lawyer, Mr. Goodman, stating that his client is interested in purchasing theproperty as soon as possible. Mr. Gardner informs Mr. Goodman that the house is listed at a purchaseprice of $875,000.00. Rather than go back and forth over the phone, Mr. Goodman requests to meet in
person to see if they can come to some mutual agreement and negotiate a final deal. The Pinkmans areexcited to meet with Mr. Goodman since they have not received any offers to date.
Please view the initial meeting here: https://www.youtube.com/watch?v=rArzMrhTxF8.Following this initial meeting, the Pinkmans were outraged and insulted. They felt like they were beingbacked into a corner. Their son Jesse has once again caused a lot of mess! He is the one who convertedthe basement, not them. They have spent months fixing the damage he caused.
A few days passed and the Pinkmans cooled off, yet still they felt as though they had no choice but toengage with Mr. Goodman’s client. On May 12, 2020, the Pinkmans direct their lawyer to send thefollowing email to Mr. Goodman:
Mr. Goodman does not respond to this email. On the morning of May 14, Mr. Goodman calls MrGardner and leaves a voicemail message stating that he is on his way over to deliver the check. Mr.Goodman got sidetracked during the day on a busy file and by the time he arrived to Mr. Gardner’soffice, the office was closed. On the morning of May 15, 2020, Mr. Goodman personally hand delivers a certified check in the amount of $150,000 made payable to Mr. Gardner’s escrow account. Mr. Gardnerrefuses to accept the check.
1. Given the facts outlined above and in the video clip, is there a valid contract to buy and sell thehome at 9809 Margo Avenue?Please provide your answer in paragraph form. In your answer, outline the five elements of acontract, explain and define each element, apply the facts in this scenario to each of theelements, explaining whether or not each element is met, and come to a conclusion.2. For the purpose of answering this second question, we will change some of the facts.New facts: The day after the initial meeting in the video clip, the Pinkmans enter into a contractof sale for the sale of their home with Mr. Goodman’s client. The closing is set for next week,but the deal just does not seem right to the Pinkmans. They no longer want to perform theirobligations under the contract.
Question: What defence(s) can the Pinkmans raise to get out of this contract prior to the closingdate? Will they be successful?Please provide your answer in paragraph form. In your answer, outline all possible defences,define and explain the elements of the defence(s), apply these revised facts to those elements