Business Law: Using IRAC, Contracts Unit

Statute of Frauds 100 pts

IRAC

Frances has lived in an apartment for ten years when she decides to buy a house. Her one-year lease will end on May 1. On April 15, she orally contracts to buy Frank’s house for $100,000, with the closing (transfer of the deed) to take place on June1. Frank’s lawyer, who is out of town on vacation, is to draft a written contract of sale on his return to his office on May 15. Because Frances’s lease is terminating, Frank agrees to let her take possession of the house on May 1 if Frances gives him a down payment on the house of $5,000. Frances agrees and gives Frank the $5,000. She moves into the house on May 2, and the following weekend plants trees in the back yard. On May 10, Frank receives a written offer from Green to buy Frank’s house for $120,000. Frank accepts Green’s offer, asks Frances to move out of the house, and tries to return the $5,000 to Frances. Frances claims that she has an enforceable contract to buy the house. Frank claims that any such contract must be in writing to be en­forceable under the Statute of Frauds.

Analyze using IRAC

Question 2

Breach 100 pts

Use IRAC

Stacey contracts to buy six cases of vintage Stomp Valley wine from Twisted Winery for $1,200. The contract states that delivery is to be made at Stacey’s residence “on or before May 1, to be used for daughter’s wedding reception on May 2.” On May 1, Twisted’s delivery van is involved in an accident, and no wine is delivered that day. A message was left for Stacy telling her of the accident. On the morning of May 2, Stacey buys the wine from Happy Hill Winery for $1,800, and her staff prepares for the reception. That afternoon, just before the reception, Twisted tenders delivery of the wine at Stacey’s residence. She refuses tender. Twisted sues Stacey for breach of contract, Stacy files a counter claim.

Use IRAC to analyze Stacey’s position.