Is there is a contract between bart and tom


Problem

On Day 1, Victoria and Bart enter into and sign a contract under which Bart is to purchase Victoria's house for one million dollars and the transaction is to settle on Day 60. By Day 20, Bart has discovered various defects in the house that would cost $100,000 to repair. On Day 21, he tells Victoria that he will not settle the purchase (namely that he will not buy the house) and purports to cancel the contract. Bart is clearly repudiating the contract on Day 21 because the house is sold on an "as is" basis and he has no other valid reason for refusing to settle.

At this time, the sharp downturn in the property market has become very obvious. Fearing that she will not be able to get the same price if she cancels the contract with Bart, Victoria tries to find a way to go forward with the sale. She talks to her father about the situation. Her father, Tom, is a builder. On day 30, Tom makes an offer to Bart that Tom will repair the defects free of charge after settlement if Bart settles his purchase with Victoria. On the same day, Bart accepts that offer. On Day 60, Bart settles the purchase by paying the purchase price. After that, Tom refuses to do the repairs. Today is Day 70.

Task

Is there is a contract between Bart and Tom under which Tom has the obligation to repair the defects in the house for free. (Do not discuss any remedies that Victoria may have against Bart.). Refer to CCLA 2017.

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