Contract Dispute Over Precise Dollar Amount in Home Purchase

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
 

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