Question

3. Alan made a contract with Betty selling her his antique vase for $25,000. When he delivered the vase to Betty, he told her that he would accept $20,000 as he had moved to a small apartment and no longer had the necessary space for the vase. Betty gave Alan $20,000 and her stamp collection valued at $100 in exchange for the promise. Two weeks later, Alan changed his mind and requested Betty to pay him the outstanding balance for $5,000.- Advise Alan of his legal position.
business Law

Answer 1

Definition of a Contract: A Contract is an agreement which is enforceable by law. The basic elements for an agreement to be a contract are mutual consent, valid offer and acceptance, adequate consideration, free consent of the parties, legal intention.

As per the given question, it is confirmed that it's an agreement made by both the parties with legal consideration. And it's a contract made with free consent of both the parties. And while making the contract they agreed on the amount of $25,000. thereafter he only asked her to pay $20000 as consideration according to his comforts and requirements. As per the Business law the consideration may not be lumpsum or at a time but it can be deferred and as and when demanded by the promisor. As in the given case, Betty entered into contract for $25000 she is bounded to pay the entire amount whenever Alan demands. So Alan can Sue for the remaining $5000 from her as and when he required.