scenarios

Select one of the scenarios listed below and explain the best solution for each. Include comments related to any ethical issues that arise. You should locate at least one scholarly source from the South University online library or one case that has been decided or is currently pending to support your answer. Your response should be between 150 and 250 words, excluding references.

Scenario 1 – Third Party Rights

Bobby was attending college two hundred miles from his home for the fall semester. Bobby’s wealthy aunt, Brenda, decides to give Bobby a car for Christmas. In November, Brenda makes a contract with Walker Ford to purchase a new car for $21,800 to be delivered to Bobby just before the Christmas holidays, in mid- December. The title of the car is to be in Bobby’s name. Brenda pays the full purchase price, calls Bobby and tells him about the gift, and takes off for a three-month vacation in Mexico.

Is Bobby an intended third party beneficiary of the contract between Brenda and Walker Ford?
Scenario 2 – Breach and Remedies

Candace Dixon agreed to sell Alana Mendes a house in Alabama for $205,000. The sale was supposed to close by November 30, when the parties were to exchange the deed for the price. The contract included a provision that “if Seller is unable to convey good, clear, insurable, and marketable title, Buyer shall have the option to: (1) accept such title as Seller is able to convey without reduction of the Purchase Price, or (2) cancel this Agreement and receive a return of all Deposits.”

An examination of the public records revealed that the house did not have marketable title. Mendes offered Dixon additional time to resolve the problem, and the closing did not occur as scheduled. Dixon decided “the deal is over” and offered to return the deposit. Mendes refused and, in mid-December, decided to exercise her option to accept the house without marketable title. She notified Dixon, who did not respond. She then filed a lawsuit against Dixon in a state court.

Discuss whether Dixon breached the contract and decide in whose favor the court should rule.

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