Business Law: Contracts
Candie Cardigan as a representative for CARDWARE has decided to auction her strapless giraffe print dress made of silk, satin with velvet markings. This particular dress was used in a movie filmed in S. Africa. The dress had been show cased among other famous dresses in the Silkadonia Actors Guild Museum. Cassie Cardigan was chosen to act as the auctioneer for World Wide Auction House. The bidding for the dress began at $5,000. Pearl has been looking forward to participating in the auction for this dress for over three months. Pearl raised her auction paddle and bid the initial $5,000. Jade also wanted the giraffe print dress and upped the ante to $5,500. The two battled the bidding to where it appeared that Pearl got the dress for $8,500.00, as Cassie smiled and nodded at Pearl.
Candie and Jade had been friends for years, as they had modeled together growing up as children. Candie quietly told Cassie to sell the dress to Jade. When Pearl presented $8,500 to Cassie, Cassie refused to take her money claiming that the dress was to go to Jade. Cassie further explained that Jade had allegedly had raised her paddle after Pearls final bid and showed five fingers meaning that she was bidding $500.00 more over the $8,500.00 bid made by Pearl. In reality, no such action by Jade had taken place.
Pearl now wants to sue for breach of contract. She has come to your office asking for your help. She wants you to request that Candie turn the dress over to her for the $8,500 that she bid. Your supervising attorney Les Agne indicates that you should investigate a cause of action for breach of contract, as well as a cause of action based on specific performance. Be aware of whom the true Plaintiff may be in this potential case and who causes of action may be brought against. Also, Les has scribbled the following notes to help you with organizing your thoughts regarding Specific Performance.
Dear Paralegal:
After you establish a contract exists as a result of the auctioning of the giraffe print dress, you may want to consider the following with regard to specific performance:
You must have a contract in place
The remedy at law must not be adequate (hence damages alone will not provide relief to the party who is seeking specific performance.
There are basically four broad categories of damages:
Compensatory (to cover direct losses and costs).
Consequential (to cover indirect and foreseeable losses).
Punitive (to punish and deter wrongdoing).
Nominal (to recognize wrongdoing when no monetary loss is shown).
The remedy must be enforceable
If one party can bring the action for specific performance, so can the other if the positions were reversed.
If there were any conditions to the contract, all were.
Be sure to discuss defenses with regard to the contract. In other words, what will Candie or the Auction House say in response to there being a contract?
Assignment Instructions:
Please write me a memorandum in the following format:
Date:
To: Les Agne, Attorney at law
From: [Your Name]
Re: Potential Causes of Action for Breach of Contract and Specific Performance
Organize your memorandum with an introduction, body, and conclusion.
