Harry has two houses, a house on the lake and a house in town. Rebecca wants to buy the house on the lake. Harry and Rebecca orally agree that Rebecca will buy the house on the lake for $300,000. Harry hurriedly writes out a contract providing that he would sell "his house" to Rebecca for $300,000 and Harry signs the top of the document. Rebecca signs. No merger clause is included in the contract. Harry backs out of the contract, and Rebecca sues him.  He tells the judge that the statute of frauds is left unsatisfied because he did not sign the document at the end and also because Rebecca did not sign at all. Then, Harry also says that even if the agreement exists (I'm not saying it does or doesn't) Rebecca told him he could take off $25,000 as a housewarming gift. Is there an enforceable agreement? Which elements of an enforceable agreement exist? Why or why not is there an enforceable agreement? Can Rebecca sue him? Can Harry testify about the $20,000 gift? Why or why not? (27)

 

Yes, there is an enforceable agreement between Harry and Rebecca. This is because in regard to common law on contract agreements, a valid and enforceable contract was established when Harry offered to sell his house on the lake to Rebecca for  $300,000 and which Rebecca accepted both orally and in written nature.

The elements of an enforceable agreement which exist in the case include mutual assent in which both Harry and Rebecca were willing to enter in a contract, A valid offer and acceptance, this is evident where Harry offered to sell the house on the lake and which Rebecca accepted to purchase and adequate consideration; capacity; and legality element exist when the contract is put in written form to legally bind both parties.

According to the case study, Rebecca can sue Harry for breach of contract or contract infringement. This is because despite having a binding contract between the two parties, Harry backs out of the contract hence he can be sued and compensation claimed by Rebecca. Generally in contract law, a contract does not have to be necessarily in written form to be breached. a breach of contract occurred in the case when Harry refused to perform his obligations and duties as set out in the contract between the two parties.

Harry can testify about the $25,000 as a housewarming gift because it was a promise made when the contract was being initiated and hence Rebecca should as well adhere to the promise terms.