Myra offers to sell her home to Hanna for “about $100,000 plus closing costs.”
Myra offers to sell her home to Hanna for “about $100,000 plus closing costs.” Hanna accepts Myra’s offer, but later a dispute arises concerning the precise dollar amount of the purchase price. How will a court resolve this dispute?
The court will determine a reasonable price to be paid by Hanna.
Explanation: Even though the price is ambiguous, the two parties in this scenario have entered a legally binding contract. The principle of indefiniteness gives the courts the power to fill in missing or ambiguous terms in a contract such as this. Because there is a general price stated, the courts can easily set the missing value in a way that is fair to both parties.
- Student: Gilbert Henderson
- Textbook: Corporate Ethics and Moral Principles
- Course: ETH 321