Memo: Contract Breach for Condo Sale
Memo
This document addresses the issue of the Condo sale contract between Jason Momoa and Tom Arnold. A contract happens to be a lawfully binding arrangement involving two entities or individuals to do or refrain from doing something. Contract law is the oldest field of rule that deals with business or commercial transactions (Adams, 2018). Since the beginning of organized civilization, it has existed and is crucial to the corporate world’s stability. Despite the existence of contract law, contract breaches do occur, which affects the parties and those who are indirectly connected to them. As a result, this article attempts to determine the contract issues, whether there was a breach of contract, entitlement to damages, type harm, and the remedies regarding the Condo sale.
Contract Issues
Common contract clarity issues include contract scope, which entails the contract’s size, coverage, region, and space. The second is payment methods and terms, whereby the parties can settle on the payment method to use. For this case, Jason made a down payment to purchase 123 Okoboji way Unit 12. The third issue is penalties terms, where in the event of a contract violation, the seller is obligated to pay a specific amount of money regarding the estimated level of damage caused. Compliance limits refer to the rules and procedures laid forth in the contract. Unexpected Price spikes may occur if business contracts have no price protection provisions or restrictions. For this case, the price of the Condon Tom was raised to $300,000, which was not the agreed amount.
Breach of the Contract
A contract breach happens whenever one side of a contractual agreement falls short of the provisions of the deal. If any party to a contract fails to meet the contractual obligations, their conduct shows that they are incapable of working as per the contract. The above is according to section 82 of the Nepalese Contract Act 2056 (Adams, 2018). The contract will be terminated, and they will be considered to have breached the contract. There are two types of contract breaches: anticipatory breach and current breach. Anticipatory breach is a declaration by the contracting party that he will not complete the contract and will be released from its obligations. This kind of advanced renunciation directly affects the parties’ rights. The types of anticipatory breaches, such as openly renouncing contract agreements or doing an activity that makes it difficult to keep promises, for instance, what Tom did to Jason when he raised the price of the Condo.
The second type of breach is the present breach, and this contract breach happens when either the seller or the plaintiff fails to execute his or her contractual obligations when they are due. The actual breach of contract, on the other hand, occurs during the execution of the contract when one party fails or refuses to perform. After Jason completed the renovation of the Condon, he stopped by and brought him a new contract that entailed a higher price than they had agreed (Adams, 2018). These are the two most common forms of contract breaches; however, additional types of contract breaches exist.
Damages
Damages are the monetary compensation awarded by the court to the affected party for the loss or harm caused by a contract violation. When one party breaches a contract, the other party has the right to file a lawsuit for damages. Because they have suffered a loss as a result of the violation. The goal of awarding damages is to put the affected person in the same situation they were in before the breach of the contract. Jason would like to purchase the Condo, but if he cannot do that, he would like to get as much money back as possible to make him be in the position he was in before the breach.
The requirements to get damages are that the plaintiff fulfills all of the contract’s terms and conditions, one party suffers a loss due to the breach of a contract, and the loss must be directly related to the extent of damages. In the case of Jason and Tom, Jason has been entitled to an exemplary type of damage. This type of damage is also known as punitive damage and is more than the plaintiff’s actual loss (Adams, 2018). The purpose of awarding exemplary damages is to punish the offender or to persuade the defendant not to repeat or conduct a similar breach in the future.
Remedy of the Contract
A remedy is a relief provided to compensate the other party for the loss or harm they have experienced. When one of the parties breaks the contract, the other party has the right to sue for damages. In other words, a remedy is a legal mechanism for enforcing a claim. In the event of a breach of contract, the aggrieved party might seek ways such as rescission of the contract or suit for specific performance to get remedies. The Nepalese Contract Act 2056 permits this option and several others. Jason has the right to sue Tom for the present type of breaching contract. After he had completed the renovation, spending much of his time, money, and energy on the Condon and the place now looked good, Tom increased the price, making it difficult for Jason to purchase it.
Reference
Adams, A. (2018). Law for business students (10th ed.). Pearson Education Limited.