Ann wrote a $500 check to Art as a deposit on Art's 240Z car. The memo section of the check read: "Deposit on 1978 240Z car of Art Mole. Sale price $4500." Art initialed the memo section. When Ann returned the next day with the remaining $4000, Art
said, "Sorry, I sold the car for $4,000 cash yesterday and sent your check back." The cheapest 240Z Ann can find is $5200. What are Ann's rights? Discuss the following: a. Was a contract formed? b. Are there statute of frauds problems? c. Could Ann collect damages? If so, what?
a. There was a contract.
b. The check and memo satisfy the statute of frauds.
c. Art did Ann a big favor by returning the check. Ann's damages:
$5200
-4500
$ 700 plus incidental damages
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