Legal Case Studies: Breach of Contract, Liability for Damages, and Offer and Acceptance

Case Study 1: Breach of Contract

borrowed $5000.00 for his college tuition, promising to repay the money without interest on November 1, 2018, when his student loan came through. Romeo didn't register for college but in September, 2018, used the money to take his new girlfriend Juliet to Las Vegas for a week of fun, spending all of the $5000. When Jan learned of this she was furious and demanded that he repay the money. Romeo refused to do so. She then sued Romeo alleging breach of contract and asked the courts to order him to return her $5000.00.

1. What is/are the legal issue?

2. What are the legal tests/rules that would be used by a court applying the common law?

3. Make an argument for the Plaintiff applying the common law

4. Make an argument for the Defendant applying BC law

Question  6

Mondo Equipment Supplier (Mondo) entered into a contract agreeing to deliver a front-end loader to Jin’s Construction (Jin’s) for use in a road building project which Jin’s was engaged in with the City of Penticton (the City). Jin’s contract with the City provided for liquidated damages of $15,000 per week for every week the road project was late in completion. (Assume the liquidated damages contract is valid and enforceable) Mondo was made aware of the contract with the City and that the front end loader was to be used for that contract and of the liquidated damages clause at the time it signed the contract with Jin’s. Mondo delivered the loader two weeks after the date it was supposed to be delivered, and as a result Jin’s finished the road contract two weeks late and had to pay $30,000 in liquidated damages to the City for late completion of the project.  Jin’s tried to locate another loader in Penticton but was not able to. Jin’s sues Mondo for the liquidated damages he had to pay the City.

Will Mondo be liable for the damages which Jin’s owes for late completion of the road? Explain by answering the following questions.

a. Identify two legal issues to be found in the facts of this case by stating each of them in the form of a question

b. Name and then state the legal tests that apply to each of the legal issues you have identified.

c. Make an argument for the Plaintiff

  d.  Make an argument for the Defendant

Question 7

Case Study 2: Liability for Damages

On September 5 Jones offered to sell his 40 foot sailboat to Smith for $100,000.00.  He also told Smith that the offer would remain open until September 30.  Smith said he would think about it.

On September 9, Smith went to his bank and arranged for a loan to cover the purchase price.  He also engaged some ship's carpenters to repair some minor damage to the hull of the sailboat that he had observed during the negotiations.  He planned to have those repairs done after he took title to the sailboat.  

On September 10 Smith heard from a friend, Hughes, that Jones had sold the sailboat to a third party.  Shortly thereafter, Smith attended at Jones' address and deposited a written acceptance of Jones' offer through the mail slot in the front door of Jones' home.  A woman opened the door as Smith was leaving and told him that Jones was out of town but would be arriving on Westjet flight 109 at the Kelowna airport the next morning if Smith needed to talk to him.  

The next morning, September 11, Smith attended at the airport and as Jones came down the ramp into the main terminal Smith said "I accept your offer for the sailboat."  Jones said "You can't accept.  I've already sold the boat to someone else."  Smith protested, saying that Jones had promised to keep the offer open for Smith to accept until September 30.  Smith further stated that he had acted to his detriment on the strength of Jones' promise and so Jones was bound to sell the sailboat to him.  Jones said "No way."

Smith knows that he could sell the boat to a potential buyer for $150,000.00.  He sues Jones for damages for breach of contract.

a. Identify two legal issues to be found in the facts of this case by stating each of them in the form of a question.

b. Name and then state the legal tests that apply to each of the legal issues you have identified.

c. Make an argument for the Plaintiff

d.  Make an argument for the Defendant

Facts of case

Knight is the owner of Armour Heights Subdivision. On September 1, he offered in writing to sell Lot #3 in the subdivision to Archer for $15,000; on September 2, Archer accepted the offer in writing and delivered her acceptance in person to Knight.

On September 4, Knight telephoned Archer to say that he had just learned that a shopping center was going to be built in the subdivision near Lot #3 and that he now wanted to have $22,000 for each of the lots, including Lot #3. Archer, equally excited about the news, agreed to change the price stated in the written contract from $15,000 to $22,000 and wrote her initials on the date opposite the change on both copies of the contract.

Later, Archer tendered a cheque for $15,000 "in full settlement of the amount owing for Lot #3 per our agreement of September 2."    Knight deposited the cheque and sued Archer for an alleged $7,000 balance owing.

a. Identify two legal issues to be found in the facts of this case by stating each of them in the form of a question.

b. Name and then state the legal tests that apply to each of the legal issues you have identified.

c. Make an argument for the Plaintiff

d.  Make an argument for the Defendant