Attached.

Running head: LAW OF CONTRACTS

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Law of Contracts
Name
Institutional Affiliation

LAW OF CONTRACTS

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Law of Contracts
Question 1
Issue
Van Development Inc. has contracted BNI Inc. to construct a mall and two months after the
construction BNI feels that there has been an inflation of prices so they demand that Van
Development pays the $250,000 extra. The question is if the extra money that is demanded is
enforceable under the terms of the contract.
Rule
Van development Inc. is the offeror of the contract in this case and BMI is the offeree of the
contract. The contract was reached and agreed to by both the parties with a stipulated price
noted on the contract after much consideration and communication. Section E2 of contractual
offers states that regardless of any defects in the terms of the offer if the parties to the
agreement have performed or have started to perform, any defect can be cured by their actual
actions, this is deemed as creating the specifics of the vague terms.
Analysis
According to the rule, in this case, it was the obligation of the offeree to conduct due
diligence and do enough research on the pricing and availability of all that will be required
within the entire period of the construction before signing and being part of the contract. If
the offer was not feasible to the offeree he or she was supposed to bargain and make it clear
that the contact would not be satisfactory. By signing to the terms and conditions of the
contract the offeree automatically becomes liable to any breach of the contract.
Conclusion
Van Development Inc. is not liable for the payment of the extra $240,000 because the
stipulated terms of the contract do not state as such. The extra amount will be the liability of
BMI Inc. because of their negligence before the signing of the contract.

Question 2
Issue
Deb and Vin have entered into a verbal agreement that requires Deb to sell her 55-inch TV to
Vin for $900 and the issue, in this case, is to find out if this type of contract is enforceable
under Michigan state law.
Rule
In Michigan, like many other states, a verbal contract still can hold as a valid contract as long
as all the other required characteristics have been met to support and enforce the contract.
Analysis

LAW OF CONTRACTS

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A contract does not have to be written for it be considered as a valid contract. In the case of
Deb Vs Vin there has to be six basic requirements that will make their engagement a contract.
The first thing is the offer which...