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Phung v Presti Case Review
Phung v Presti Case Study
In this case study, Phung orally agreed to sell a thoroughbred horse to Presti for $60, 000. When Presti sent a check in payment, Phung told him that he intended to hold the check for a month for tax purposes. Phung retained possession of the horse. While the check remained uncashed, a disagreement arose between Phung and Presti. Phung announced that he would not go through with the transaction and that, because the contract was oral, it was unenforceable. Presti claimed that his payment.
The question of the law is whether Phung’s claim that sending the check made the contract enforceable, is valid.
My decision in this situation would be that the claim by Presti that sending the check made the agreement enforceable is valid and hence the contract with Phung was enforceable and binding. Therefore, Presti is entitled to an order of specific performance to compel Phung to complete or go through with the transaction involving the sale of the thoroughbred horse. I agree with Presti that by sending the $60, 000 check to Phung, a valid and enforceable contract came into existence between the parties since this served as a sufficient consideration for the horse.
I based my decision in the above case study on the principles of the sufficiency of consideration and promissory estoppel. Since the basis of a contract is the exchange of promises between the parties involved, consideration refers to the what the parties have bargained for. That is, consideration is what one party receives as a benefit and the detriment that the other party suffers (Adamson, 2008). In Thomas v. Thomas (1842), the court defined consideration as anything which has value in the eyes of the law. In this case, Presti gave Phung a check worth $60, 000 as payment for the horse which Phung decided to hold for tax purposes. This check constitutes a valuable consideration for the price of the horse unless Phung can prove that it was a fake one which would be dishonored at the bank. It represented an exchange for Phung's promise to sell the horse to him, and hence sending this check to him made an otherwise unenforceable contract enforceable since the general rule is that oral contracts are valid as long as all the elements of a contract are present. These elements include an offer, acceptance, consideration, and an intention to create legal relations (Adamson, 2008)........................GET A PLAGIARISM FREE COPY