PA165: Introduction to Torts
May 19, 2014
To: File
From: Paralegal John
Date: May 19, 2014
Re: Angela Woodside Case
Facts: Angela Woodside, a resident of New York, inherited ten acres of land in Ohio. She decided to sell the property to Doyle Contactors, Inc. for the sum of five hundred thousand dollars ($500,000.00). Doyle Contractors entered into a contract with Angela Woodside for the purchase of the above property on June 1, 2007. As part of the contract, Ms. Woodside provided owner financing by accepting a $100,000 down payment from Doyle Contractors and agreeing to receive the remaining $400,000 in monthly installments over a ten (10) year period. …show more content…
On December 2, 2007, the Ohio Board of Agriculture designated a large area of land as solely agricultural use (“Agricultural Preservation Area”), barring commercial development of any type for a five (5) year period. The re-zoning would become effective April 1, 2008. The Agricultural Preservation Area included the property sold by Angela Woodside to Doyle Contractors. On December 15, 2007, Doyle Contractors, upon learning of the board’s decision, sent a letter to Angela Woodside stating that it intended to stop making its monthly payments for the land after April 1, 2008 due to the board’s decision to re-zone the land as agricultural use only. Ms. Woodside comes to your firm’s office on December 18, 2007.
Issue:
1. Has Doyle Contractors breached its contract with Angela Woodside?
2. Does Ms. Woodside have to wait until after April 1, 2008 to sue Doyle Contractors for breach of contract?
3. Assuming a breach of contract has or will occur, what remedies does Ms. Woodside have after the breach?
4. What defenses might Doyle Contractors raise in the event it is sued by Ms. Woodside?
5. Ms. Woodside has stated that a “farmer” has approached her about taking over the mortgage payments for Doyle Contractors and receiving title to the land. What three contract principles would apply to such an arrangement, including whether the contract needs to be in writing and whether Ms. Woodside needs approval from Doyle Contractors or no
Rule:
1.
Breach of contract states that “failing to perform any term of a contract, written or oral, without a legitimate legal excuse.” Hill, Kathleen and Gerald. Breach of Contract. (n.d.). Retrieved from: http://dictionary.law.com/Default.aspx?selected=93.
2. Rescission and Restitution states that “a decision by the court that renders the contract null and void and requires the parties to return to the wronged party any benefits received under the agreement.” Linda A. Spagnola, J.D., Contracts for Paralegals: Legal Principles and Practical Applications 182-183 (2008) Retrieved from: https://online.vitalsource.com/#/books/0078133580/pages/76856527.
3. Punitive damages is “an amount of money awarded to a nonbreaching party that is not based on the actual losses incurred by that party, but as a punishment to the breaching party for the commission of an intentional wrong.” Spagnola, Linda. 2008. Contracts for Paralegals. Legal principles and practical Applications. Retrieved from: https://online.vitalsource.com/#/books/0078133580/pages/76856527.
4. Mitigation states if “a person who has suffered an injury or loss should take reasonable action, where possible, to avoid additional injury or loss.” Farlex. Mitigation. (2014). Retrieved from: …show more content…
http://legal-dictionary.thefreedictionary.com/Mitigation+of+Damages.
5.
Declaratory judgment is “the court’s determination of the rights and responsibilities of a party with respect to the subject matter of the controversy. The court’s decree settles the matter in its entirety.” Linda A. Spagnola, J.D., Contracts for Paralegals: Legal Principles and Practical Applications 182-183 (2008) Retrieved from: https://online.vitalsource.com/#/books/0078133580/pages/76856527
6. Objective impracticality states that “A party’s performance is excused only when the circumstances surrounding the contract become so burdensome that any reasonable person in the same situation would excuse performance.” Linda A. Spagnola, J.D., Contracts for Paralegals: Legal Principles and Practical Applications (2008)
7. Frustration of purpose states “sometimes called commercial frustration, when unexpected events arise which make a contract impossible to be performed, entitling the frustrated party to rescind the contract without paying damages.” Linda A. Spagnola, J.D., Contracts for Paralegals: Legal Principles and Practical Applications (2008)
8. Force Majeure states that “[A]n event that is neither foreseeable nor preventable by either party that has a devastating effect on the performance obligations of the parties.” Linda A. Spagnola, J.D., Contracts for Paralegals: Legal Principles and Practical Applications
(2008)
Application/ analysis:
1. Has Doyle Contractors breached its contract with Angela Woodside?
Doyle has breached the Contract with Ms. Woodside. The elements of a contract are offer, acceptance and consideration in which Doyle agreed to the conditions. Due to an area being for agricultural use only Doyle sent a letter saying they would stop making payments after April 1st, 2008 which was in breach of the contract because the remainder would be paid to Ms. Woodside in a ten year period.
2. Does Ms. Woodside have to wait until after April 1, 2008 to sue Doyle Contractors for breach of contract?
No, Ms. Woodside does not have to wait because she can take it into mitigation so she does not lose anything further from this contract after the breach occurs.
3. Assuming a breach of contract has or will occur, what remedies does Ms. Woodside have after the breach?
Ms. Woodside could apply Rescission/ restitution to this case because the issue that rose after the contract took place of one area was for agricultural use only where in this would apply because it could be used to make the contract void to where Ms. Woodside could resell the land. Ms. Woodside could also apply punitive damages to this case because this is to teach the breaching party not to do it again plus this can be applied because before Doyle Contractors agreed to this offer she may have had other prospective buyers for the land. She could use declaratory judgment to settle this case in which the courts would settle this matter completely.
4. What defenses might Doyle Contractors raise in the event it is sued by Ms. Woodside?
Doyle Contractors could apply Objective impracticality because Doyle’s may have intended to use the property for something that required all the property in which there being a large area of the land is only for agricultural use it could have caused a burden on the contractors of trying to work around this area. They can also apply frustration of purpose because the event of one area being only for agricultural use may prevent them from being able to use the land in question by reducing their plans for the land. Force Majeure may be used because the large area being used for agricultural use only and the fact that Ohio board of agricultural marked this as for agricultural use only was not foreseeable before the contract had been established.
5. Ms. Woodside has stated that a “farmer” has approached her about taking over the mortgage payments for Doyle Contractors and receiving title to the land. What three contract principles would apply to such an arrangement, including whether the contract needs to be in writing and whether Ms. Woodside needs approval from Doyle Contractors or no.
In this here would have to be an offer (taking over payments for Doyle And receiving title in hand), Consideration and Acceptance. This contract would still need to be in writing so that there is no confusion nor legalities involved if another occurrence happen within the property. For this to be sold the case would need to go through mitigation so both Ms. Woodside and Doyle Contractors can agree on the proposed contract with the farmer due to Doyle’s contract is not up until April 1st.
Conclusion: Ms. Woodside does have a case with a breach of contract with Doyle Contractors because they sent a letter stating that payments on the land would stop after April 1st. Ms. Woodside’s best option would be mitigation so that the farmer can purchase the land from her so neither her nor Doyle contractors suffer any damages in the contract between the two.
Regards,
Justin Cassidy
Justin Cassidy
References:
1. Hill, Kathleen and Gerald. Breach of Contract. (n.d.). Retrieved from: http://dictionary.law.com/Default.aspx?selected=93
2. Linda A. Spagnola, J.D., Contracts for Paralegals: Legal Principles and
Practical Applications 182-183 (2008) Retrieved from:
https://online.vitalsource.com/#/books/0078133580/pages/76856527.
3. .” Farlex. Mitigation. (2014). Retrieved from: http://legal-dictionary.thefreedictionary.com/Mitigation+of+Damages.