Business Law and Ethics

Business Law and Ethics

Myrna, a 40-year old teacher, wants to move to Chicago because of a job offer.  She owns a house in St. Louis, her current residence, which has been appraised and valued by a professional real estate appraiser at$500,000.

She posted a “For Sale” sign in the yard that stated “Make an Offer”.  Ned, who is a casual friend of Myrna’s, responded to the sign and made an appointment with Myrna to tour her house.   Later, Ned invited Myrna to dinner to discuss the house and a possible sale. Myrna and Ned had a leisurely dinner, and 2 glasses of wine each with dinner.   At the end of dinner, Ned offered Myrna $225,000 for her house; Myrna accepted.

Ned and Myrna signed a sales contract, but before the deal was completed and before the deed was transferred to Ned, Myrna’s relatives tried to urge Myrna to cancel the cancel the contract claiming that the contract was unenforceable.

Analyze the deal between Myrna and Ned.  Is the contract enforceable?  Why or why not?

min 300 words

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