This case study clearly shows the difference between SAD Co. Vs. FUN Co. SAD Company President and CEO met up to agree on a joint investment. During their meeting, they took some shots of alcohol, especially Whiskey and SAD’s CEO told FUN’s CEO that their company was interested in purchasing one of their buildings in West Palm Beach.
The CEO of SAD Company stated that the building is in a great location. The return on their investment can be very beneficial, he believes. To achieve the objective of the meeting, SAD Company CEO offered to his counterpart $5 million for the building which was denied by FUN’s CEO arguing that the building was worth around $9 million. Additionally, FUN’s CEO indicated that they were willing to sell the building. SAD Company CEO stated that he was willing to talk to his board about selling the building. The $1.00 counterpart was paid and he signed a formal contract.
The CEO of SAD Company managed to convince the board to buy the building for $9M the following day. However, when SAD Company CEO contacted FUN’s CEO to relay their willingness to purchase the building he was disappointed since he was informed that FUN Company has decided not to sell the building because after their meeting yesterday they realized how much potential the building actually had.
Therefore, as an assistant to the attorney for FUN Company, I believe that the key legal issues pertaining to the case are associated with verbal agreement and SAD Company has the right to demand that FUN honor its word and sell them the building for$9 million (Sommer & Quinlan, 2018). This case study shows that the agreement was only verbal, as neither side signed any form of documentation. This means that they entered into an oral contract and this is accepted within a contract law (Kälin, 2005).
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