1. Juan entered in an oral contract to buy Luke's vacant building for $50,000. He gave Luke a $5,000 deposit. They intended to reduce their agreement to a written contract latter. Pursuant to their oral agreement, Juan took possession of the building and spent $30,000 making improvements so that it would be capable of being rented to the public. Due to rise in the value of similar properties, Luke served Juan with a notice to vacate the building. Luke contends that the oral contract is unenforceable and that Juan must vacate the building. Is Luke correct?
Please explain.
2. Bronx Community College has decided to terminate Professor Canals. The College sends a letter offering him $50,000 provided the Professor would sign a Full release giving up all claims he might have against the College. Professor Canals signed it and out it in the nearest mailbox. When he got home, he received a check from the College for $50,000. Professor Canals went back to the mailbox and got a mailman to give him back his letter. He now wants to sue the College Claiming he never accepted the offer.
Is there a valid contract here? Please explain.
3. You own a grocery store and are looking to enter into an agreement with a wholesaler of fruits and vegetables. You write to the wholesaler offering to buy 100 cases of tomatoes, 100 cases of bananas and 100 cases of pineapples, payable on delivery 30 days from today.
Wholesaler writes we accept your offer and adds interested at 5% for unpaid balances?
Is there a valid contract? Explain.