Read the following scenario and answer the question in 5–10 sentences.
You and Kristy devise a plan to develop an empty parcel of real estate on the south side of Chicago. The development consists of a 400 unit complex comprised of apartments for medium income occupants. The investment requires a down payment of $500,000. A little short on money, you approach your cousin Jimmy who happens to own a fitness center across the street from the potential development and ask to borrow $100,000 to satisfy the down payment. Your sales pitch to Jimmy is that, if the development goes through, then he'll have an influx of new customers, but you don't offer to make Jimmy part of the development deal. You convince Jimmy to let you borrow the $100,000. Ecstatic over the potential of new customers, Jimmy makes major improvements to his fitness center. Unfortunately, the deal falls through, but you still pay back the borrowed funds to Jimmy. Jimmy is now threatening to sue you and Kristy for the amount expended on his improvements. How do you explain the situation to Jimmy?
Your sales pitch to Jimmy is that, IF the development goes through, then he'll have an influx of new customers,There is an element of contingency here. There was no guarantee given that there would be an influx of new customers.
Besides, there was no contract between you and Jimmy to compensate him for any losses if the deal does not go through and the development does not happen. Therefore, it is not actionable as breach of contract.
The amount borrowed from Jimmy has been repaid, and your contract with Jimmy has been duly discharged by performance.
Jimmy can also not bring legal action under tort, as there is no resultant legal injury for Jimmy.
Read the following scenario and answer the question in 5–10 sentences. You and Kristy devise a plan to develop an empty parcel of real estate on the south side of Chicago. The development consists of...
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...