Assignment 3.2

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Written Assignment 3.2- Click to submit3.2 - Written Assignment: Common Law Contract Disputes and the Uniform Commercial Code (Due Tuesday, 11:59 p.m. CST) (100 points):Andy and Cindy Anderson were interested in purchasing a new home in a fashionable suburb of Council Bluffs, Iowa. They were enthralled with the homes historic value even though it was going to require a mountainous amount of renovation and repair. In negotiation with the seller, Andy had insisted that their offer of $275,000 was dependent upon their ability to obtain a 30 year mortgage at less than 4% interest in fixed rate financing. The seller accepted the offer, subject to the condition of financing. All of the discussions were via the telephone, and occurred during the week of April 5, 2013. Andy was having a horrible time finding such a low rate for such a long period of time, but he assured his agent and the seller that financing would be obtained by the date assigned for closing on May, 1, 2013.Meanwhile, Cindy was running around scheduling subcontractors and interior designers to meet with them as soon as their financing was obtained and the mortgage finalized. She even ordered some fabulous new wall coverings from her designer which were to cost $125.00/yard for over 100 yards. The fabric was to be specially made from hand sewn silk by monks in Tibet and was to carry the crest of the Anderson family in its design. The designer obtained an earnest deposit of $1000 from Cindy and ordered the monks to begin sewing immediately. None of these transactions appeared in writing.At the closing meeting, Andy delivered some bad news. He was unable to find appropriate financing, although he had found a lender willing to grant 15 years at 4%. He requested an additional month to obtain the financing and the seller relented. On June 1st Andy still had not obtained appropriate financing and the seller was unable to sell the property for anything over $200,000 to any other buyer.Cindy had not been privy to these transactions and was embarrassed when the designer phoned on June 15 to tell her that her order had arrived and she was preparing to hire a paper hanger to install it. Cindy told her that there was not going to be any paper hanging because the sale had fallen through.In two separate actions, discuss the likelihood of success of the home seller against the Andersons and the interior designer against Cindy for damages. Were there enforceable contracts here? If so, what is the appropriate measure of damages? If not, why not? Please apply all the relevant principles from both common law and the UCC to resolve these claims.View less

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