Question

BUSINESS LAW HELP

Schmidt, operating a sole proprietorship, has a large piece of used farm equipment for sale.  He offers to sell the equipment to Barry for $10,000. Fully discuss the legal effects for each of the following events on the offer:

1. Schmidt dies prior to Barry’s acceptance, and at the time he accepts, Barry is unaware of Schmidt’s death.
2. The night before Barry accepts, fire destroys the equipment.
3. Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Schmidt dies, and later Barry accepts the offer, knowing of Schmidt’s death.
4. Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Barry dies, and Barry’s estate accepts Schmidt’s offer within the stipulated time period.

Answer 1

answer-

1-Schmidt dies prior to Barry’s acceptance, and at the time he accepts, Barry is unaware of Schmidt’s death.

In this case, there is no contract between Schmidt and Barry because the one of the element to make a contract valid is legal competency but in this case, Schmidt dies prior to accepatnce of Barry so Whether Barry knew or not about death of Schmidt, The contract can not be performed as death of Schmidt created incompetency as how a dead person can perform a contract.

This is based on legal doctrine or method to terminate a contract called termination of contract by death of offeror.

2- The night before Barry accepts, fire destroys the equipment

In this case, we can use two things first, acceptance of offer in which if Barry did not accept the offer then there is no contract. second is Subject matter means the main subject on which offer is made is destroyed then such contract is not valid.

In this case, the main subject matter that is farm equipment is destroyed so contract was terminated at that time also there was no acceptance from side of Barry.

3- Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Schmidt dies, and later Barry accepts the offer, knowing of Schmidt’s death.

In this case, the same doctorine also applied in the first. even though there was $100 paid to Schmidt to make offer irrevocable but as i said above that when a offeror died and not able to perform the contract then in this case accepting party knowing or not knowing death can not do anything. the contract got discharged or terminated at that time.

4- Barry pays $100 for a thirty-day option to purchase the equipment. During this period, Barry dies, and Barry’s estate accepts Schmidt’s offer within the stipulated time period.

This contract is also void because the main parties involved in this contract was barry and Schmidt. if Barry dies before accepting the offer then contract is not created this means contract was terminated.

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