Question

Read the following scenario and answer the question in 5–10 sentences.

Your real estate development company enters into an oral purchase agreement with the owner of land that contains several barns located out in the country. Your plan is to raze the barns and build a strip mall. One of the barns contains various construction equipment. You also verbally agree to purchase the equipment for $2,000, along with paying off any associated debt. You deliver a check to the land owner for the price of the land and the barns. In return you receive a deed to the land along with a note that says, "happy you are taking that equipment off my hands!" After starting demolition of the barns, you decide that you will no longer need the construction equipment. Where do you stand with the deal?

Answer 1

As we made a deal and it is agreed by both the parties and an amount is decided in return for the equipment , we need to stand by our deal and we need to take the equipment. We can sell it off if we do not need it but we cannot refuse to take the equipment after giving the cheque to the owner. As the verbal agreement satisfies all the required criteria it is considered legal and we need to be bound to it.