Breach of Contracts

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Running head: BREACH OF CONTRACTS
Breach of Contracts
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Running head: BREACH OF CONTRACTS
Table of Contents
Introduction..................................................................... 3
Contract between Hercules and Xena................................... 3
Breach of contract by HM................................................ 5
Exemption Clause by HM................................................ 6
References................................................................... 7

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Running head: BREACH OF CONTRACTS
Breach of Contracts
Introduction
Hercules loses his house as a result of his absence because of his many quests. Xena
wishes to sell her property urgently below the market price and gives Hercules a proposal for the
sale which includes a $250,000 purchase price which is $50,000 lower than the market price. The
offer is open only until 2.00 p.m. of the following day and its acceptance can only be through the
exchanging of contracts at Xena’s property before the stipulated deadline.
Hercules is interested in Xena’s offer but the property is at a distance of 200 km away
and his car is faulty to enable him reach the property before the deadline as the only available
mode of transport is private transport. He therefore goes to Hydra Mechanics (HM) so that his
car can be repaired. HM advises him that the car needs new brakes and shock absorbers, a task
which can be completed the following day by 12.00. Hercules stresses his urgency and the need
for him to get to Xena the following day before 2.00 pm. The repairs were not yet completed at
the stipulated time. Instead, they were completed at 1.30 pm. On realizing that he would be
unable to exchange contracts on the agreed time with Xena, Hercules contacts Xena through a
phone call and verbally accepts the offer. Thereafter, Hercules is unable to contact Xena further
due to poor mobile reception at Xena ‘s residence. Xena ends up selling the property to
Hippolyta, the Amazons Queen, on the following day where after she goes to Asia for a trip.
Contract between Hercules and Xena
The interaction between Hercules and Xena and their phone conversation may be
considered to amount to a valid contract on various conditions (Kadian, 2003). The perception
that conversations cannot result to binding agreements is a misconception. If there is the