Asked by Meliza Acosta on Jun 13, 2024
Verified
Melinda is considering opening a fast-food business across the street near a university campus.Melinda needs to secure $100,000 in loans to open her business.The owner of the land promises her that she has two months to accept his offer of $50,000 for the land.Discuss how Melinda can ensure that the owner does not sell the land to another buyer.
Fast-Food Business
A commercial enterprise that serves quick service food items to customers in a fast-paced environment.
University Campus
The land and buildings belonging to a university, where teaching and administrative facilities are located.
Secure Loans
Loans that are protected by collateral, reducing the risk for lenders in case the borrower fails to repay.
- Understand the prerequisites for contract establishment, focusing on offer, acceptance, and consideration components.
- Determine the outcomes of failing to uphold a contract and the possible solutions.
Verified Answer
RC
Rachel CabreraJun 16, 2024
Final Answer :
The owner has offered to hold his offer open to Melinda for two months.Melinda can pay the owner a consideration for the offer,thus creating an option contract with the owner.Under the laws governing an option contract,the owner's offer cannot be revoked either by death or insanity.The consideration offered by Melinda can be credited toward the purchase price,in case Melinda buys the land.However,an option contract means that if Melinda fails to honor the offer,the owner is under no legal obligation to return the consideration.
Learning Objectives
- Understand the prerequisites for contract establishment, focusing on offer, acceptance, and consideration components.
- Determine the outcomes of failing to uphold a contract and the possible solutions.